Types of Disputes

Disputes are categorized into four main types:

1. Fraud
   Filed when a cardholder does not recognize a transaction. This may result from a lost or stolen card, or a compromised PAN (card number).
   
   
2. Authorization (Auth)
   Authorization disputes arise when a partner program seeks to recover funds spent by the cardholder. This typically occurs when a clearing transaction is processed without prior authorization, potentially causing a negative balance.
   
   
3. Processing
   Raised when a transaction is valid but contains incorrect information, such as an incorrect amount, duplicate charge, or wrong account details.
   
   
4. Consumer
   Filed when there is a dispute between the cardholder and merchant, such as non-delivery of goods/services, defective items, or products not as described, and the merchant refuses to provide a refund.

Classification Notes:

• Fraud and Authorization disputes are also referred to as Allocation Disputes.
• Processing and Consumer disputes are also referred to as Collaboration Disputes.