Disputes and chargebacks

What happens when a customer files a dispute.

What is a dispute

A dispute (also called a chargeback) happens when a customer contacts their bank or card issuer to reverse a charge. This can occur for various reasons: the customer didn't recognize the charge, believes they didn't receive the product, or claims the transaction was unauthorized.

Disputes are handled by the payment processor and the customer's bank. Affiliateo facilitates the process, but the final decision is made by the bank.

Dispute fees

When a dispute is filed, a flat $15 fee is charged to the seller. This fee covers the cost of processing and responding to the dispute.

The $15 fee is charged as soon as the dispute is opened, regardless of the outcome. If you win the dispute, the fee is refunded.

What happens when a dispute is opened

When a customer files a dispute, the following actions are taken automatically:

  • Buyer is banned — The customer is automatically banned from the platform to prevent further abuse.
  • Seller is notified — You receive a notification with the dispute details.
  • Funds are held — The disputed amount is held in your balance pending resolution.

Dispute resolution

Disputes are resolved by the customer's bank. There are two possible outcomes:

Won (resolved in your favor)

  • The held funds are restored to your available balance.
  • The $15 dispute fee is refunded.
  • The buyer remains banned from the platform.

Lost (resolved in buyer's favor)

  • Your balance is debited for the full disputed amount plus the $15 fee.
  • The buyer receives a refund from their bank.

Preventing disputes

The best way to handle disputes is to prevent them from happening. Here are some tips:

  • Write clear product descriptions — Make sure customers know exactly what they're buying before they purchase.
  • Respond to support quickly — A customer who can reach you is far less likely to go to their bank.
  • Offer refunds proactively — If a customer is unhappy, issuing a refund is almost always cheaper and less damaging than a dispute.

Sales suspension

If your business accumulates 5 or more lost disputes, your ability to accept payments is automatically suspended. This is to protect the platform and its customers from ongoing issues.

A sales suspension means customers will not be able to purchase any products from your business until the issue is resolved. Contact support if you believe the suspension is in error.