Dispute flow and process breakdown
Payments 101
Updated 17 Jul 2026
5 min
Andrii Romanyshyn
Head of Chargeback Prevention, Solidgate
After a customer raises a dispute, it goes through several steps. It’s essential to understand the dispute process before trying to resolve it.
TL;DR
- A dispute moves through set stages: a fraud notification (NOF), an optional request for information, a notification of chargeback, and then the chargeback itself.
- A NOF (Visa TC40, Mastercard SAFE) isn't a dispute and no money moves – but it can turn into a chargeback if 3DS wasn't used. Use it to refund, stop delivery, or block the shopper.
- Retrieval requests are mostly gone: Visa phased them out in October 2020 and Mastercard dropped them except for Maestro in Europe. Amex and Discover still use them.
- After the notification of chargeback, the flow runs: first chargeback → evidence supplied → reversal or pre-arbitration → second chargeback → arbitration.
- Front-load your defense. Submit everything relevant to the reason code with the first chargeback – you won't get another chance to add documents later.
Notification of Fraud warning
Notification of Fraud (NOF) is a report that a bank or financial institution issues to alert a card network, such as Visa or Mastercard, about fraudulent activity detected on a credit or debit card account.
The report is typically used to request that the card network cancel or suspend the compromised card to prevent further fraudulent transactions from being approved.
Visa TC40 reports available with Solidgate are used to track fraudulent activity on Visa credit, debit, and prepaid card accounts.
Mastercard SAFE reports are used to track fraudulent activity on Mastercard credit, debit, and prepaid card accounts.
Both reports contain information about the specific card account that has been compromised, as well as details about the fraudulent transactions that have been detected.
NOF is not a dispute, and no money is withdrawn from the merchant’s account. However, this transaction can become a chargeback if 3Ds is not used.
The merchants can get NOF reports to perform the following actions:
- Issue refunds to avoid chargebacks
- Stop delivery of goods or services
- Review the shopper’s activity and block if needed
Request for information aka Retrieval request
A Request for Information (RFI) is a request sent by a credit card issuer to an acquirer for additional information about a transaction. The issuer may send an RFI if they need additional information to decide on a chargeback or dispute. There are a few different situations in which an issuer might send an RFI to an acquirer:
When a customer disputes a charge
If a customer disputes a charge on their account and requests a chargeback, the issuer may send an RFI to the acquirer to request additional information about the transaction.
This could include information about the purchased product or service, customer interactions with the merchant, and any relevant receipts or invoices.
When the issuer has concerns about a transaction
In some cases, the issuer may have concerns about a transaction and send an RFI to the acquirer to request additional information. This could be because the transaction appears unusual or because the issuer has identified other potential red flags.
When the issuer needs additional information to make a decision
In some cases, the issuer may send an RFI to the acquirer if they need additional information to decide on a dispute or other issue. This could include information about the merchant’s policies or procedures or the customer’s account.
At this stage, no money is withdrawn from the merchant’s account. However, acquirers must respond promptly to RFIs to help the issuer resolve disputes and make informed transaction decisions.
Due to the optional nature of signatures for all transactions, Visa has announced the phasing out of retrieval requests, effective October 2020. Instead, Visa’s Order Insight platform offers the same functionality, rendering retrieval requests obsolete.
On the other hand, Mastercard has discontinued retrieval requests, except for Maestro-branded card transactions in Europe. Similarly, Mastercard has a platform that provides equivalent functionality.
However, card networks such as Discover and American Express still mandate the use of retrieval requests, though this could change in the future.
Although Visa and Mastercard no longer include the RFI stage in the chargeback process, you may still receive RFIs from issuers who have chosen to use this process, but you are not required to respond or provide any information.
Notification of Chargeback
A Notification of Chargeback (NOC) is a notification issued by a card issuer to an acquirer when a cardholder disputes a transaction and requests a chargeback.
A Notification of Chargeback may be issued after a Request for Information has been submitted, or it may occur immediately after payment has been marked as Settled or Refunded without needing an RFI.
The NOC will include information about the disputed transaction and the reason for the chargeback. The acquirer can then review the NOC and decide whether to accept or challenge the chargeback.
If the acquirer decides to challenge the chargeback, they will need to provide evidence to the card issuer to support their case. If the acquirer is unsuccessful in challenging the chargeback, they will be required to refund the cardholder for the disputed transaction.
Chargeback stages
After NOC is submitted, the dispute process consists of the following steps:
- 1st chargeback
The disputed amount is removed from the merchant’s account. This is the final stage if the merchant agrees with the dispute or does not provide supporting documents to defend its case.
In addition, the merchant may be assessed a chargeback fee by the acquiring bank or payment processor for the administrative cost of processing the chargeback.
It is important to provide any supporting information that can help your case at the start of the chargeback process, as there will not be any additional opportunities to do so later on.
Make sure to address the specific chargeback reason code and submit any relevant documentation to support your case. - Information supplied
The acquirer receives the supporting documents and sends them to the card network. It is no longer possible to change these documents. - Chargeback reversed
The disputed amount is returned to the merchant’s account. At this stage, the issuer reviews the defense. This is the final stage if they accept the defense or do not respond within the required timeframe. - Pre-arbitration (Visa, Mastercard, Diners only)
If the issuer denies the defense, they may initiate pre-arbitration, which the acquirer will review and provide additional information and/or documentation. - 2nd chargeback
If the issuer denies the defense or the acquirer accepts their pre-arbitration case, a second chargeback occurs, and it’s impossible to provide any additional supporting documents. This is the final stage.
Solidgate's and tools are built to properly prevent and handle chargebacks – decreasing them more than 2x and saving millions for our clients. Contact our team to learn more. - Arbitration
Chargeback arbitration is a process used to resolve disputes between merchants and cardholders when a chargeback has been initiated.
The arbitration process is typically used when the merchant and cardholder cannot agree about the disputed transaction. It allows an independent third party (card network) to review the case and make a final decision.
In the case of Visa and Mastercard, chargeback arbitration is typically initiated after the merchant has provided a defense against the chargeback and the card issuer has denied the defense.
The card network manages the arbitration process, which involves submitting additional evidence and documents by the merchant and the card issuer.
An arbitrator will review all the evidence and decide on the chargeback. The arbitrator’s decision is final and binding, and the chargeback is either granted or denied based on their decision.
The arbitration process is typically only used as a last resort, and it can be time-consuming and costly for both the merchant and the card issuer. It is generally better for both parties to resolve the dispute informally before resorting to arbitration.
Understanding each stage of the is key to protecting your business and minimizing losses. Acting quickly and providing thorough documentation improves your chances of winning disputes.
Frequently asked questions
A NOF is a report a bank issues to alert the card network about fraudulent activity on a card account – Visa uses TC40 reports, Mastercard uses SAFE. It's not a dispute and no money leaves your account, but you can act on it: issue a refund to avoid a chargeback, stop delivery of goods, or review and block the shopper.
A request from the card issuer to the acquirer for more information about a transaction before deciding on a dispute – receipts, invoices, or details of the purchase. Visa phased retrieval requests out in October 2020 in favor of Order Insight, and Mastercard dropped them except for Maestro transactions in Europe. Discover and American Express still mandate them. No money moves at this stage.
Six: the first chargeback (the disputed amount leaves your account), information supplied (your evidence goes to the card network), chargeback reversed (the funds come back if your defense holds), pre-arbitration (Visa, Mastercard, and Diners only), the second chargeback (final, with no new documents allowed), and arbitration, where the card network makes a binding decision.
At the very start of the chargeback process. Once the acquirer forwards your documents to the card network, you can't change or add to them – so address the specific reason code and include everything relevant in your first response.
The last-resort stage where the card network reviews the case and makes a final, binding ruling. It kicks in when the merchant's defense is denied and neither side backs down. It's slow and costly for both parties, so most disputes are better settled at an earlier stage.
