Disputes & Chargebacks

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Overview

A dispute (also called a chargeback) happens when a customer contacts their bank to reverse a charge. When this happens, the disputed amount plus a $20 dispute fee is deducted from your store’s available balance immediately. Most disputes never reach you. Pandabase’s fraud network blocks the majority of fraudulent transactions before they complete — and for the ones that do get through, we automatically build most of the evidence package on your behalf.

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How Pandabase protects you

As the merchant of record, Pandabase sits between you and the card networks. This means our fraud systems work on your behalf at every stage of the payment lifecycle.

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Network-level fraud blocking

Every transaction passes through Pandabase’s fraud network before it completes. The network evaluates signals across all stores on the platform — not just yours — which means patterns that would be invisible to a single merchant are caught early.

• Card testing detection — rapid low-value authorization attempts from the same source are identified and blocked before a charge goes through.
• Device and behavioral fingerprinting — checkout sessions are scored based on device signals, browser behavior, and session patterns. High-risk sessions are blocked at payment time.
• Velocity checks — unusual spikes in purchases from the same card, email, or IP across any store on Pandabase trigger automatic blocks.
• Network-wide blocklists — cards and emails involved in confirmed fraud on any Pandabase store are blocked platform-wide. A fraudster who hits one store can’t move to another.
• BIN and issuer risk scoring — card ranges and issuing banks with elevated fraud rates are flagged for additional verification or declined outright.

Most fraudulent transactions are stopped here and never result in a completed order.

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Early fraud alerts

Even after a payment completes, card networks sometimes send early warning signals before a customer files a formal dispute. Pandabase acts on these automatically:

• Low-value orders (under $20) are automatically refunded to prevent a costly dispute. You’ll receive an email notification.
• Higher-value orders are flagged for manual review so you can decide whether to refund or wait.

Because these happen before a formal dispute, no $20 dispute fee is charged. Early fraud refunds are the cheapest way to handle suspicious transactions.

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Automatic evidence collection

When a dispute does occur, Pandabase automatically compiles evidence from the transaction since we’re the merchant of record:

• Customer name, email, and billing address
• IP address and geolocation at checkout
• Payment method details and AVS/CVV match results
• Timestamp of purchase and fulfillment
• Transaction and order identifiers

You only need to provide proof that the customer used the product — we handle the rest.

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Dispute lifecycle

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Dispute reasons

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How to win a dispute

The single most important factor in winning a dispute is proving the customer received and used the product. Pandabase handles the payment-side evidence automatically — your job is to show the product was delivered and accessed.

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What to submit by dispute reason

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General tips for strong evidence

• Submit evidence quickly. The sooner you respond, the more time the bank has to review. Don’t wait until the deadline.
• Be concise and factual. Banks review hundreds of disputes. Clear, organized evidence with timestamps and screenshots wins over long explanations.
• Show the timeline. A clear sequence — purchase, delivery, access — is the strongest evidence pattern.
• Include screenshots, not just logs. Raw server logs are harder for bank reviewers to interpret. Annotated screenshots of dashboards or activity feeds are more compelling.
• Don’t fight disputes you’ll lose. If the customer has a legitimate complaint, accepting the dispute preserves your dispute rate. A high dispute rate is more expensive than any single loss.

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Preventing disputes

The best dispute is one that never happens. Most disputes are preventable with clear communication and fast fulfillment.

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Before the sale

• Write accurate product descriptions. Overpromising is the top cause of “product unacceptable” disputes. Show exactly what the customer will get.
• Display your refund policy clearly. Customers who know they can get a refund are less likely to go straight to their bank.
• Use a recognizable statement descriptor. “Unrecognized” disputes happen when customers don’t recognize the charge. Make sure your store name is clear on their bank statement.

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After the sale

• Deliver immediately. Digital products should be fulfilled within seconds of payment. Delayed delivery is the most common trigger for “product not received” disputes.
• Send a confirmation email. A clear receipt with the product name, amount, and your store name helps customers remember the purchase.
• Log access and activity. Keep records of when customers download, activate, or use your product. This is your most valuable evidence if a dispute occurs.
• Respond to support requests fast. Many disputes start because a customer couldn’t reach the merchant. A quick reply with a refund offer is always cheaper than a $20 dispute fee plus lost funds.

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When in doubt, refund

A proactive refund costs you nothing beyond the original platform fee. A dispute costs $20 regardless of outcome, risks your funds for 60–90 days, and counts against your dispute rate. If a customer is unhappy and the amount is small, refund first and avoid the dispute entirely.