Managing payment disputes is crucial for online businesses using Squarespace Payments. Here's everything you need to know about handling customer transaction challenges effectively.

Understanding Payment Disputes

A dispute occurs when customers contest transactions with their bank for various reasons:

• Fraudulent charges
• Missing refunds
• Duplicate transactions
• Non-delivery of products/services
• Quality issues
• Pre-payment subscription cancellations
• Unrecognized payments

Chargeback Process

When a dispute occurs:

• The disputed amount plus a $20 fee is immediately deducted from your payout balance
• If insufficient funds exist, charges apply to your linked bank account
• Inquiry cases don't trigger immediate deductions

Inquiries vs. Chargebacks

American Express and Discover typically start with an inquiry (request for information) before proceeding to a chargeback. While the process is similar, no fee is charged unless you lose the inquiry case.

Managing Disputes

Response Timeline:

• Email notifications sent upon dispute filing
• Reminders at 5 days and 2 days before deadline
• Response window: 20-45 days (varies by card network)

Dispute Statuses:

• Dispute open
• Response sent
• Deadline missed
• Dispute approved
• Dispute rejected

Resolution Options

1. Accept the Dispute:

• Changes payment status to "dispute lost"
• Finalizes the chargeback
• Access through Finance dashboard > View details > Accept dispute

2. Challenge the Dispute: Required Evidence:

• Store refund policy/terms
• Refund denial explanation
• Processing data (tracking numbers, delivery signatures)
• Customer communication records
• Additional relevant documentation

Submission Process:

1. Access Finance dashboard > Orders
2. Select disputed payment
3. Click "Start response"
4. Provide evidence
5. Save draft or submit

Resolution Timeline:

• Bank review: 60-75 days
• Email notification upon decision
• Successful disputes return transaction amount
• Chargeback fee refund varies by bank

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