A dispute, also known as a chargeback, occurs when a cardholder questions a charge on their account and asks the card issuer to reverse it. This can happen for several reasons: the cardholder may not recognise the charge or remember authorising it, the product or service might not have been delivered as described, there could be billing errors like incorrect amounts or duplicate charges, or it might be due to fraudulent activities, such as unauthorised use of the credit card.
The issuer initiates a chargeback by creating a dispute on the card network. This immediately pulls the money along with one or more dispute fees from April. April then debits both the dispute amount and the fees from the merchant's balance and notifies the merchant by email.
For integrations that wish to be notified in realtime on new or updated disputes, we have webhooks available for this purpose. We also have a Query Disputes API endpoint for querying the current state of all matching disputes.