When using PbN Payments, it’s important to understand how payment disputes work and what actions you can take when they occur.

A dispute (also called a chargeback) happens when a patient questions a payment and asks their bank to reverse it.

Disputes are part of standard payment processing — and knowing how to track and respond to them helps you protect your practice’s revenue.

What Is a Dispute?

A dispute occurs when a cardholder contacts their bank to challenge a payment.
If the bank deems the claim valid, it can withdraw funds from your account until the case is resolved.

Some payment types (such as credit cards) allow disputes, while others (like bank transfers) generally do not.

Common Types of Disputes

Type	Description
Fraud	The cardholder claims the transaction was unauthorized.
Consumer Dispute	The patient is dissatisfied with the product or service.
Processing Error	A mistake occurred, such as being charged twice.
Authorization Issue	The transaction was not properly authorized by the bank.

Key Terms to Know

Term	Meaning
Issuer	The patient’s bank or financial institution that issued their card.
Chargeback	The process of reversing a transaction after a dispute is accepted by the bank.
Chargeback Reversed	The dispute is won, and funds are returned to your account.
Reverse Chargeback	Same as Chargeback Reversed—the merchant successfully defends the transaction.

How the Dispute Process Works

When a patient disputes a charge, the case moves through several possible stages. Not all disputes include every step.

1. Notification of Fraud (Optional)

PbN Payments may receive a fraud warning before a chargeback is filed. You can act early by refunding the payment or blocking future transactions to avoid a chargeback.

2. Request for Information (RFI) (Optional)

The issuing bank requests more details about the payment, such as receipts or treatment records. If you don’t respond, the case may escalate to a formal chargeback.

3. Notification of Chargeback

The bank officially initiates the chargeback process. You’ll have the opportunity to defend the charge by submitting documents that prove the payment was legitimate (e.g., signed receipts, treatment notes, or appointment records).

Defending a Chargeback

If you choose to contest a chargeback, submit evidence supporting the validity of the charge.

If your defense is accepted, the disputed amount is returned to your account, and the case closes.

If the bank rejects your defense, the dispute may escalate through additional stages.

Stage	Description
1st Chargeback	The bank removes funds from your account. You may defend within the allowed timeframe.
Information Supplied	Your defense documents are reviewed by the bank.
Chargeback Reversed	Your defense is successful; funds are returned.
Pre-Arbitration	(Some cards only) The issuing bank disputes your defense and escalates the case.
2nd Chargeback	Final stage — the bank reissues the chargeback. This decision is final and cannot be appealed.

💡 Tip: Always provide clear documentation and respond within the required timeframe to maximize your chances of winning a dispute.

Dispute Timeframes

Each card network sets its own deadlines for when a dispute can be raised and how long you have to respond.

General Time Limits

Cardholders usually have up to 120 days from the transaction date to dispute a charge.
For certain transactions (e.g., travel or pre-orders), Visa and Mastercard may allow up to 540 days.

Typical Response Windows

Once a dispute is raised, you must submit your defense within the bank’s deadline.
Here are standard response timelines (in calendar days) by network:

Stage	Visa	Mastercard	Amex	Discover	Diners	JCB	CUP
1st Chargeback – Initiation	120	120	120	120	120	120	180
Your Response to 1st Chargeback	9–18 (see note below)	40	14	25	25	40	30
Final Decision (Chargeback Reversed or Second Chargeback)	60	70	50	60	80	35	20

📌 Note for Visa:
Starting July 21, 2025, Visa disputes in the U.S. and Canada must be defended within 9 days. For disputes before this date or outside these regions, the timeframe remains 18 days.

Special Cases

Klarna: You can only respond during the Request for Information stage — not after a chargeback occurs.
- 14 days (consumer reason codes)
- 7 days (unauthorized purchase)
- 96 hours (high-risk order)
American Express: If you defend and lose, the status remains Chargeback. Only if you win does it become Chargeback Reversed.
PULSE: Pre-arbitration losses finalize within 30 days from defense.
STAR: Issuing bank timeframe varies:
- 75 days for authorization issues
- 90 days for processing errors
- 120 days for all others

Best Practices to Avoid and Manage Disputes

✅ Always collect and store signed treatment consent forms and payment receipts.
✅ Use clear billing descriptors so patients recognize charges.
✅ Respond to fraud alerts or RFIs promptly.
✅ Work with the PbN Support Team for assistance defending disputes.
✅ Regularly monitor your Disputes Dashboard in PbN Payments for updates and statuses.