Dispute Resolution

Simple definition
Sorting out issues between a shopper and business.
Expanded definition
The process by which conflicts arising from transactions, especially chargebacks, are settled between cardholders and merchants.


In the world of payments, disagreements between consumers and merchants inevitably arise. Navigating these disputes requires diplomacy and skill. Understanding best practices for payment mediation enables equitable solutions.

Defining Payment Mediation

Payment mediation involves an impartial third party facilitating resolution between two opposing sides of a transaction gone awry. Mediators clarify facts, interpret policies, and propose fair compromises.

Common scenarios include:

  • Chargeback disputes - Settling credit card payment reversals.
  • Billing errors - Correcting accidental or incorrect charges.
  • Service issues - Determining accountability for problems.
  • Non-delivery - Establishing refunds for unreceived goods.
  • Contract conflicts - Interpreting ambiguous or misunderstood terms.

Masterful mediation transforms mishaps into renewed trust.

Keys to Successful Payment Mediation

Expert mediators:

  • Maintain neutrality and treat all parties respectfully.
  • Thoroughly investigate details and documentation.
  • Identify constructive solutions amenable to both sides.
  • Allow parties to be heard and clarify miscommunications.
  • Propose equitable payment resolutions or refund arrangements.
  • Cooperate with banks and card networks as needed.

The Bottom Line

Payment problems test relationships between merchants and consumers. Impartial mediation helps establish liability fairly while preserving rapport on which commerce relies. With skillful arbitration, opposing sides become partners again.