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Disputes and Chargebacks

When a consumer contests a transaction, Nopan tracks the case through two phases:

  1. Pre-dispute: the consumer raises a complaint, and the merchant can resolve it directly.
  2. Chargeback: if the pre-dispute is escalated and the consumer PSP accepts the request, the case moves into a formal chargeback. From there it can go through representment, pre-arbitration and arbitration.

Nopan sends a webhook when a case opens, when it changes and when it closes, so you can track each case without polling.

Reading the diagrams​

Each phase below has its own state diagram. The colours mean:

Colour
Meaning
Blue
Case opened
Yellow
Case updated
Green
Final state; the case is closed

Pre-dispute​

A pre-dispute opens when the consumer raises a complaint about a transaction. While it is open, the consumer and the merchant can exchange messages, and the case ends in one of these ways:

  • Refunded: the merchant refunds the consumer.
  • Closed: the consumer closes the case.
  • Chargeback Request Accepted / Declined: the consumer escalates the case (Chargeback Requested) and the consumer PSP decides whether it becomes a chargeback. If it is accepted, a chargeback case opens.
Webhook
Field
Values
PRE_DISPUTE_INITIATED
—
A new pre-dispute has been opened
PRE_DISPUTE_UPDATED
updateType
NEW_MESSAGE CHARGEBACK_REQUESTED
PRE_DISPUTE_CLOSED
reason
REFUNDED CLOSED CHARGEBACK_REQUEST_ACCEPTED CHARGEBACK_REQUEST_DECLINED

Chargeback​

A chargeback opens after the consumer PSP accepts a chargeback request. Chargeback webhooks include the original preDisputeId inside the chargeback object, which links the chargeback to the pre-dispute it came from.

The acceptor PSP can either accept the chargeback (Accepted), which closes the case, or contest it (Represented). After a representment, the case can escalate in stages:

  1. Representment: the consumer PSP accepts the representment, or escalates to pre-arbitration.
  2. Pre-arbitration: the acceptor PSP accepts or declines it, or the consumer PSP withdraws it. If it is declined, the consumer PSP accepts the decline or escalates to arbitration.
  3. Arbitration: the case ends when either party withdraws or accepts, or when the arbitrator decides in favour of one of the PSPs.
Webhook
Field
Values
CHARGEBACK_INITIATED
—
A new chargeback has been opened
CHARGEBACK_UPDATED
updateType
NEW_MESSAGE REPRESENTED PRE_ARBITRATION_INITIATED PRE_ARBITRATION_DECLINED ARBITRATION_INITIATED
CHARGEBACK_CLOSED
reason
CHARGEBACK_ACCEPTED REPRESENTMENT_ACCEPTED PRE_ARBITRATION_ACCEPTED PRE_ARBITRATION_WITHDRAWN PRE_ARBITRATION_DECLINE_ACCEPTED ARBITRATION_ACCEPTED ARBITRATION_WITHDRAWN ARBITRATION_IN_FAVOR_OF_CONSUMER_PSP ARBITRATION_IN_FAVOR_OF_ACCEPTOR_PSP
Payment method support

Not every payment method supports disputes. Check the feature matrix on each payment method page.