Dispute resolution rate

Dispute resolution rate tracks how often you successfully defend against customer-initiated chargebacks. When a customer disputes a charge through their card issuer, the merchant has the opportunity to submit evidence proving the transaction was legitimate. The resolution rate captures the outcome of this process.

Winning disputes recovers revenue and sends positive signals to card networks about business legitimacy. A low win rate may indicate inadequate evidence collection, slow response times, or genuinely problematic transactions that should have been refunded proactively.

Analysing resolution rates by dispute reason code helps improve evidence templates and identify root causes. Fraud-related disputes require different evidence (delivery confirmation, IP logs) than service disputes (correspondence, usage data). Tailoring your response to each reason code significantly improves win rates.

Dispute Resolution Rate = (Disputes Won / Total Disputes Decided) x 100

For example, if 40 out of 100 disputes are resolved in your favour, the resolution rate is 40%. Industry averages hover around 20 to 30%, so a rate above 40% indicates a strong dispute management process.

Exclude disputes still under review and those withdrawn by the customer before a decision. Only count disputes where the card network or issuer has rendered a final verdict to keep the metric accurate.

1. 1

   Build evidence templates by reason code

   Create pre-built evidence packages for each common dispute reason. Fraud disputes need delivery proof and device fingerprints. Service disputes need usage logs and customer correspondence. Standardised templates ensure nothing is missed.

2. 2

   Respond within 24 hours

   Speed matters. Disputes that receive evidence quickly are more likely to be reviewed thoroughly by the issuer. Set up alerts so your team responds to new disputes the same day they arrive.

3. 3

   Collect comprehensive transaction data

   Log IP addresses, device information, delivery confirmations, and customer interactions at the point of sale. This data becomes your evidence. Gaps in documentation are the primary reason disputes are lost.

4. 4

   Refund proactively when evidence is weak

   If you cannot build a strong evidence case, issue a refund before the dispute escalates. A refund is cheaper than a lost chargeback and does not count against your chargeback rate.