Different Payment Methods will use different terms for similar or even identical dispute types, which can make understanding Disputes difficult. Here are the most used terms and their meanings:
- Dispute: This is the umbrella-term but also used by Klarna to refer to escalated Inquiries.
- Chargeback: The term used by credit card companies such as VISA or Mastercard for Disputes. This occurs when a customer contacts their credit card issuer directly to report a problem. Once we receive a chargeback, it's no longer possible to refund an order through the Seller Interface.
- Inquiry: A pre-dispute state in Klarna and PayPal where a customer has reported a problem to the payment provider. These cases have not yet escalated to formal Disputes. No dispute fee is charged and there is no other
monetaryfinancial impact as long as the issue is resolved during this stage. - Claim: Used by PayPal for escalated Inquiries.
The dispute lifecycle typically begins when a customer reports a problem. end consumer can initiate an Inquiry (Klarna) or Inquiry/Claim (PayPal) while also reporting the issue directly to the credit card issuer whose card is stored in their Klarna or PayPal account. As a result, different dispute types may occur simultaneously.