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Dispute states

Look up what each Dispute state, response state, and reason code means so you know what step to take next.

Whether you manage Disputes through the Finix Dashboard or the API, the response_state and state of the Dispute tell you what to do to move the Dispute forward.

Dispute response states

response_state Description
NEEDS_RESPONSEThe Merchant needs to respond to the Dispute by Dispute#respond_by.
RESPONDEDThe issuing bank has received the evidence and actively reviewing it. No action needed from the Merchant.
ACCEPTEDThe Merchant has accepted the Dispute. When a Dispute is accepted, you concede that the Dispute is not worth challenging or representing. For details on how to accept a Dispute, see Accepting a Dispute.
NO_RESPONSE_ALLOWEDThe final Dispute#response_state when a Dispute is either WON or LOST.
UNKNOWNDispute details couldn't be submitted to the processor. Comes up when testing Disputes in sandbox or on the DUMMY_V1 processor.

Dispute states

state Description
INQUIRYThe Dispute is being reviewed by the buyer's issuing bank. When Dispute#state is INQUIRY no changes can be made.
PENDINGThis Dispute#state change happens at a later time, after the Dispute accept request is submitted. When you accept a Dispute on a sale, the Dispute#state changes to LOST. When you accept a Dispute on a refund, the Dispute#state changes to WON. To catch this change, manage Disputes with the API: subscribe to Finix's webhooks and listen for the Dispute updated event.
LOSTThe Dispute is lost and no further changes can be made.
WONThe Dispute is won and no further changes can be made.

Dispute reasons

The reason of the Dispute provides additional details regarding why the dispute got filed.

reason Description
CLERICALAn error occurred while processing the sale, or the cardholder has an issue with the transaction and refuses the goods.
FRAUDThe cardholder claims they didn't approve or authorize the transaction. FRAUD is the primary reason Disputes get created.
INQUIRYThe Merchant didn't respond by the respond_by date, or the transaction got flagged for review due to the network's internal standards.
QUALITYThe cardholder has issues with the quality of the goods or services received. Reasons can include receiving damaged goods or a service that doesn't match what's promised.
TECHNICALA technical issue caused the transaction to process funds incorrectly.

A Dispute is created with a PENDING state. The Dispute#state updates with the issuing bank’s decision, but Disputes can be further escalated and the outcome may change.

When the Dispute#state updates to INQUIRY or PENDING, the issuing bank is requesting additional information from the seller that shows the transaction was legitimate. For steps on how to upload evidence and respond to the issuing bank, see Responding to disputes.

Next steps