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How to Manage Chargebacks in Adyen

Chargebacks are a common challenge for businesses processing online payments. A chargeback occurs when a customer disputes a transaction through their bank, which can result in the amount being withdrawn from your account.

Written by Alexandra Petersdottir

Table of Contents

What is a chargeback?
​If you receive a dispute notification
​Overview of your disputes
​Options for handling a dispute
​To contest a dispute
​Questions & Answers

What is a chargeback?

A chargeback is a refund initiated by the customer’s bank, often due to:

  • Fraud or unauthorised use of the card

  • Incorrect billing

  • The customer did not receive the goods or services

You can read more about chargebacks and how they work on Adyen’s website here.

If You Receive a Dispute Notification

If one of your customers initiates a dispute, you will be notified by email. The notification will include details of the transaction in question and the deadline by which you must respond. It will also contain a link that takes you directly to the booking related to the dispute.

Overview of Your Disputes

To manage chargebacks in Adyen, go to:
​Settings (in the left menu) > Payments > Adyen > Disputes.

Here you’ll find different tabs showing:

  • Ongoing chargebacks

  • Fraud alerts

  • Open and closed chargeback

Options for Handling a Dispute

Accept the dispute

If you wish to refund the customer immediately, you can accept the dispute. The refund will then be processed automatically.

Dispute the Chargeback

If you believe the dispute is incorrect, you can choose to defend the refund. In this case, you will need to provide supporting evidence to validate the transaction. Refer to the section “How to Dispute a Chargeback” to see which information is essential for progressing the case.

How to Dispute a Chargeback

  • Find the payment reference
    Use the payment reference and search under History (in the left menu) to identify which booking the dispute relates to.

  • Check the Reason Code

    Every dispute has a reason code that indicates why the customer is contesting the payment. This determines whether the dispute can be challenged and what supporting evidence is required. You can find all reason codes here.
    ​

FAQ'S

Where in the system do I manage my disputes?

As an admin, go to Settings → Payment → Adyen → Disputes.

Where can I find information about why a customer has opened a dispute?

Under the dispute's reason code. A full list of all reason codes can be found on Adyen's page here.

What happens if I accept a dispute?

A refund is issued to the customer automatically.

How do I dispute a claim?

You need to submit evidence supporting the transaction, see the heading "To contest a dispute".

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