Reference

Chargeback & dispute glossary

Plain-language definitions of the terms sellers encounter when responding to disputes and chargebacks. Educational only — not legal or financial advice.

Chargeback: A reversal of a card payment initiated when a customer disputes a charge with their bank or card issuer, rather than asking the seller for a refund. The seller is given a window to respond with evidence; the issuing bank makes the final decision.
Dispute: A general term for a customer challenging a payment. Depending on the provider it may be handled internally (for example PayPal's Resolution Center) or as a card chargeback through the customer's bank.
Friendly fraud (first-party misuse): A chargeback filed by a genuine customer for a purchase they really made — sometimes by mistake (an unrecognized charge, a family member's purchase) and sometimes deliberately. It is distinct from third-party fraud, where a stolen card was used.
Item not received (INR): A dispute reason where the customer says the order never arrived. The seller's strongest records are usually the delivery trail: tracking, carrier scans, and proof of delivery.
Delivered not received (DNR): A dispute where tracking shows delivery but the customer says they never got the item. Useful records include the delivery scan, GPS or photo confirmation, and the address on file.
Representment: The process of a seller responding to a chargeback by re-presenting the transaction with supporting evidence to the issuing bank for reconsideration.
Reason code: A code assigned by the card network that states why a chargeback was filed (for example, product not received or not as described). It tells the seller which records matter most.
Proof of delivery (POD): Evidence from a carrier that an item was delivered — typically a delivery scan, timestamp, signature, GPS location, or photo. Central to item-not-received disputes.
Compelling evidence: Records that clearly support the legitimacy of a transaction — order details, delivery confirmation, the policy shown at purchase, and genuine customer communications, organized so a reviewer can follow them quickly.
Retrieval request (inquiry): A request for transaction information that sometimes precedes a formal chargeback. Responding clearly at this stage can resolve the question before it escalates.
Issuing bank: The bank that issued the customer's card. It receives the seller's evidence through the payment provider and decides the outcome of a chargeback.
Acquirer (acquiring bank): The bank or processor that handles card payments on the seller's side and passes dispute evidence along to the card network and issuing bank.
Card network: The system (such as Visa or Mastercard) that routes transactions and sets the rules and timelines for how disputes and chargebacks are handled.
Evidence index: A contents page that lists and numbers every document in a case file, so a reviewer can see the full set of records and find each one at a glance.