A dispute refers to a case when a customer reaches out to their payment method and reports that something with their purchase is not correct. This can range from customers reporting that a refund is missing, to delayed deliveries, products that do not match their expectation, them informing that they have already paid the invoice or them reporting that they have not authorized the purchase.
Dispute management is most relevant for Klarna and PayPal. For those payment methods, the process of disputing a payment is well-known by end consumer and the payment method encourages them to use this option. Filing a dispute is possible for up to one year.
Why is this even possible?
Filing a dispute is a service offered by the payment method to end consumers and in theory would also be possible for the merchant. The payment method refers to refurbed as the merchant. This service can not be excluded and is offered to every end consumer. This process is often used by end consumer when trying to reclaim the purchase price because they have encountered a negative experience.
Do you want to read more about Disputes? Here are some helpful links directly from their origin: