The first thing that happens when a customer disputes a credit card charge is that the credit card company initiates an investigation
The merchant is typically notified of the dispute and asked to provide any relevant documentation or evidence to support their claim
This may include receipts, shipping information, and any communication between the merchant and the customer
Once the credit card company has gathered all the relevant information, they will make a decision about whether to uphold or overturn the disputed charge
If they uphold the dispute, the merchant will be required to refund the amount in question, as well as any associated fees or penalties
In addition to the financial impact of refunds and fees, merchants may also experience damage to their reputation and customer relationships
Customers who feel dissatisfied with a purchase or experience may be more likely to initiate a dispute
To minimize the impact of credit card disputes, merchants can take several proactive steps