In this article, you will learn what a dispute is and how to deal with it effectively.
Table of Contents:
Terminologies Explained
What Is a Chargeback?
A chargeback happens when a cardholder disputes a credit card charge and asks their bank or credit card company to reverse the payment.
Common reasons for chargebacks include:
The customer didn’t receive the item
The item was not as described
The charge was unauthorized
When this happens, the cardholder’s bank starts a formal dispute process through the card network (like Visa or Mastercard). The disputed amount is temporarily taken back from Peblla during this process.
We’ll then debit your account for the disputed amount, along with any applicable dispute fees.
What is a Dispute Fee?
A dispute fee is charged when a cardholder initiates a dispute (chargeback) against a transaction. This fee is typically deducted from your account along with the disputed amount.
The fee compensates the issuing bank or credit card company for handling the dispute process. Even if you win the dispute, the fee is usually non-refundable.
Can Refunds Avoid Dispute Fees?
Yes—if you issue a full refund during the inquiry stage, the cardholder cannot proceed with a chargeback, which means you can avoid paying the dispute fee.
However, if you:
Do not issue a full refund, or
Do not submit any evidence during the inquiry,
...then the dispute will move forward to a chargeback, and you will be responsible for the dispute fee.
To process a refund, follow the steps in this article:
Proactively resolving customer concerns and responding during the inquiry stage is the best way to minimize fees and avoid escalation.
Dealing with Disputes on the Peblla Portal
Viewing Disputes in the Store Portal
Go to Store Account > Disputes in the portal, or click the "View Dispute" link in your notification email
Dispute Details Page
On this page, you’ll see:
Amount: The disputed order total (excluding dispute fees)
Stage: Inquiry or chargeback
Status: Current progress (see status definitions below)
Reason: Why the cardholder’s bank initiated the dispute
Disputed On: Date the dispute was filed
Action: Click to view full dispute details (order number, card info, channel, etc.)
The Dispute Process
Preliminary Inquiry Stage
Some card networks begin with an inquiry stage—a request for more information before formally initiating a dispute.
Inquiry Notification
You’ll receive an email with the order number, amount, and issuing bank details when an inquiry is opened.
Evidence Collection
Peblla will collect relevant evidence, including:
Transaction details
Signed receipts
Member info
Delivery records (if applicable)
Service terms
You may also submit additional evidence within 3 days of the email by sending it to:
[email protected]
Include the dispute ID in your email.
Alternatively, if you choose to refund the order, include the refund confirmation and dispute ID in your message.
Evidence Submission
Peblla will compile and submit all collected materials to the cardholder’s bank.
Inquiry Result
The bank will review the case within 80 days.
If the evidence resolves the issue, the dispute will not be escalated.
If not, the inquiry proceeds to a formal chargeback.
Dispute (Chargeback) Stage
Dispute Notification
You’ll receive another email once a formal dispute is filed, with order details and issuing bank info.
Evidence Collection
Peblla will again collect transaction details and supporting documents.
You may send your own materials within 3 days to [email protected], along with the dispute ID.
Evidence Submission
Peblla submits all collected evidence to the bank.
Final Result Notification
Within 80 days, you’ll be notified of the outcome:
Won: The bank rules in your favor. The disputed funds will be returned (minus any applicable dispute fee).
Lost: The bank does not accept the evidence; the funds will not be recovered.
Understanding Dispute Statuses
Status | Meaning |
Won | Dispute resolved in your favor; funds returned (minus dispute fee) |
Lost | The dispute was not overturned; funds are not recoverable |
Needs Response | Peblla is responding on your behalf; additional evidence may be requested |
Under Review | Evidence submitted; awaiting decision |
Closed | The dispute process ended without escalation or deduction |
Closed may occur if:
The bank accepted your evidence and ended the dispute
You refunded the order and submitted proof during the inquiry
The cardholder voluntarily canceled the dispute
For questions or help submitting documentation, contact us anytime at [email protected]. We’re here to support you through every step of the process.
How to Protect Your Business from Credit Card Fraud
With the rise in credit card fraud, merchants may experience fraudulent transactions using stolen cards. Unfortunately, these types of disputes are often hard to win, and losses can be significant.
Peblla recommends a combination of in-store practices and technology solutions to help protect your business:
In-Store Best Practices
Verify ID or ask for the last 4 digits of the credit card when customers pick up orders.
If you notice repeat disputes from the same member, consider blocking their account.
3D Secure (3DS) Protection for Online Orders
3D Secure is an extra layer of security for online credit card payments. It helps protect both you and your customers from fraud.
Peblla offers 3DS verification for online transactions. This adds an extra layer of authentication, such as:
A text message code
Face ID or banking app login
This confirms the customer is the actual cardholder.
Benefits of 3DS Protection:
Even if a fraudulent dispute occurs, the disputed amount will be returned to you, whether or not the case is won.
Please Note:
The dispute will still appear in the portal.
Disputes related to service (e.g. “item not received”) still require evidence and are not covered.
A $15 dispute fee will still be charged by the bank.
To enable 3DS, please contact your sales representative. (Additional fee applies.)
Google Pay & Apple Pay Only (Online)
Another solution is to disable manual credit card entry online and allow only Apple Pay or Google Pay.
This limits fraud, as these methods use tokenized, device-authenticated payments.
If a fraudulent dispute happens with these wallets, Apple/Google bears the loss (though the $15 fee and other service related disputes still apply).
Contact Peblla Support if you'd like to enable this setting for your restaurant.