Differences Between Disputes & Inquiries

What is the difference between a dispute and an inquiry?

You may notice that you have an inquiry but it hasn't turned into a dispute just yet! In this section, we will go over the differences between a Stripe Dispute and an Inquiry.

Q: What is an Inquiry?

A: An inquiry refer to a situation where a customer has questions or concerns about a specific transaction but hasn't necessarily initiated a formal dispute. Inquiries appear as disputed payments in the Dashboard, but they actually represent a pre-dispute stage that's typically issued when an account owner doesn't recognize a transaction on their account.

• For example, it can be a simple misunderstanding about the product itself or the customer didn't recognize the charge from their bank statement, so they reached out to their bank to flag the charge.

We recommend you reach out to your customer to withdraw their dispute with their bank OR refund the transaction to avoid this escalating to a dispute.

Below is a quick breakdown of the definition, initiation and process of Disputes and Inquiries:

Stripe Disputes:

• Definition: A dispute occurs when a customer questions or challenges a payment made through Stripe, typically due to issues like unauthorized transactions, product not received, or dissatisfaction with the purchased item.
• Initiation: Disputes are initiated by customers through their bank or card issuer. The customer may contact their bank to dispute a charge, leading to a chargeback request.
• Process: Stripe Disputes involve a structured process where evidence can be submitted by both the customer (cardholder) and the merchant (you as a Creator with a Stan store account). Stripe acts as an intermediary in the dispute resolution process, facilitating communication between the parties.

Inquiries:

• Definition: Inquiries are generally less severe than disputes. They refer to situations where a customer has questions or concerns about a specific transaction but hasn't necessarily initiated a formal dispute.
• Initiation: Inquiries can be initiated by customers directly through the Stripe dashboard or through communication with the merchant.
• Process: Unlike disputes, inquiries do not go through the formal dispute resolution process. Instead, they are opportunities for Creators to address customer concerns, provide information, and resolve issues before they escalate to disputes.

FAQS about Inquiries vs Disputes:

Q: Can inquiries turn into disputes?

A: Yes, if an inquiry is not adequately addressed and the customer remains dissatisfied, it may escalate into a dispute. Proactive communication and resolution of inquiries can help prevent this escalation.

Q: How are inquiries different from disputes?

A: Inquiries are less severe than disputes and serve as a channel for customers to seek clarification or express concerns before escalating to a formal dispute.

Key takeaway points:

1. The lowest level of a dispute is called an "inquiry" or a "retrieval," which is simply a customer requesting for more information about a charge.
2. Your customer may escalate an inquiry or retrieval into what's known as a chargeback by filing a formal dispute.
3. When a chargeback occurs, your payment received from the customer will be immediately reversed. If your business is located in the United States, a separate $15 USD "dispute fee" will also be deducted from your account balance.