As a business owner, few things are as frustrating as a customer disputing a completed payment. This is why Monnify manages the dispute process on your behalf to ensure every case is handled fairly, in compliance with regulatory standards, and with your revenue protected.

What Is a Dispute?

A dispute is the initial complaint a customer raises over a payment. It can be raised regardless of how the customer paid. This typically happens for one of these reasons:

1. Their account was debited but the transaction failed, and a reversal did not occur.
2. They did not receive the product or service they paid for or what they received did not match what they ordered.
3. They did not authorize the transaction (a fraud claim).

How Monnify handles a dispute depends on the payment method involved.

Card Disputes

When a customer disputes a card transaction, Monnify's Chargeback Team manages the process on your behalf, from notifying you to submitting your evidence to the card scheme. A lost card dispute results in a chargeback, a forced reversal of funds from the merchant back to the customer .

For more information, see Understanding Card Disputes and Chargebacks

Bank Transfer Disputes

When a customer disputes other forms of interbank transactions, Monnify's Fraud Team manages the process. The outcome may be called a refund, reversal, or recall; depending on the circumstances. Monnify's fraud team manages this process separately.

For more information, see Understanding Bank Transfer Disputes.

The Big Confusion: "But the payment was successful!"

A successful transaction on your Monnify dashboard only confirms that funds moved from the customer's bank to your Monnify wallet. It does not mean the customer's interaction with you is complete.

Days or weeks later, a customer can still approach their bank to dispute the charge; claiming they never received the service, that what they received didn't match what they ordered, or that they never authorised the payment in the first place.

What About Friendly Fraud?

Sometimes a customer receives a product or service in full, then files a false dispute with their bank anyway. This is known as friendly fraud, and you can fight it.

If a claim is false, submit clear supporting evidence demonstrating the transaction was legitimate and the value was delivered. Once Monnify presents your evidence to the bank, the claim can be challenged and declined.

Disputes are critical and must be managed properly. Mishandling them can result in lost revenue, financial penalties, and lasting damage to a business' reputation.