When a customer disputes a transaction, AIO Pay notifies you and gives you the option to Accept or Defend the case. Understanding this process helps you protect your business and respond effectively.
Notification of Chargeback or Fraud
You can manage Chargeback and Fraud notifications in:
Settings > Notifications
When a dispute or fraud report occurs, you will receive a notification.
To view and manage disputes:
Go to Reports > AIO Pay Payout Reports > Disputes
Use filters to search by location or date
Click a specific Chargeback or Fraud entry to open a pop-up with full case details
From here, you can Accept or Defend the case
Tip: Always try to contact the customer first.
Many disputes can be resolved directly, and customers can often withdraw disputes with their bank.
Chargebacks Tab Overview
The Chargebacks tab shows all disputes that need your attention.
You can view important details such as:
Payment method
Reason code
Amount disputed
Number of days left to respond
Chargebacks vs Fraud Notifications
Chargebacks
A chargeback occurs when the cardholder disputes a transaction with their bank.
If possible, reach out to the customer.
If they confirm the charge is valid, they can withdraw the dispute through their bank.
Fraud Notifications
A Fraud Notification happens when a transaction is reported as unauthorized.
Contact the customer to check if it was a mistake.
If it was in error, the customer may retract the report before it becomes a chargeback.
Need Help?
If you do not see the option to Accept or Defend, contact AIO Customer Support:
(844) 565-1637
When Should I Accept or Defend a Chargeback?
When Should I Accept the Dispute?
Accepting a dispute avoids a long, possibly costly process especially when you agree with the dispute.
You may want to accept if:
You don’t have the required defense documents
The transaction amount is too low to justify effort
The potential second chargeback fee is too risky
The transaction is confirmed fraudulent
The shopper already returned the goods
You failed to deliver the goods/services
You can accept the chargeback in:
Reports > AIO Pay Payout Reports > Disputes > Chargebacks
Once accepted (or if the defense deadline expires):
Final status = “Lost”
Dispute cycle ends
When Should I Defend the Dispute?
Defend when you have evidence or when the transaction amount is high.
Keep in mind:
A chargeback fee is applied for every chargeback
Only defend if you have strong evidence
Try contacting the customer first it may resolve the issue without escalation
How to defend:
Go to the dispute details page
Upload defense documents (PDF, JPG, or TIFF)
Make sure:
Documents meet the reason code requirements
You upload within the deadline
After uploading:
An option to download the evidence submitted on the pop-up will appear.
Status changes to “Pending” if still in the chargeback stage
Defense Document Requirements
For each chargeback, you can upload one complete document.
Accepted formats:
JPG (max 10MB)
TIFF (max 10MB)
PDF (max 2MB)
Page & size limits:
Mastercard: Max 19 pages
Diners & Discover: Max 3MB
Defense Deadline = Critical!
If you miss the deadline, your evidence cannot be submitted in any form.
Late submissions = Dispute considered Lost
Card schemes do NOT accept late uploads
Deadline is shown in the Dispute overview and Dispute page
Defense Content
Defense requirements vary by reason code.
You must provide transaction details and supporting documents to build a strong case.
Contact AIO Customer Support for specific details provided by the customer when filing the dispute.
(844) 565-1637
Even if you meet all requirements, winning is not guaranteed.
What Is the Timeframe to Defend?
Each scheme (Visa, Mastercard, etc.) has its own deadlines.
Issuing banks and merchants must both respond within these scheme-set time limits.
You can:
View how many days are left in the Dispute overview and Dispute page
Check full timeframes in the Docs
Some disputes start counting from expected delivery date (not transaction date), such as:
Services not provided / Merchandise not received
Goods not as described / Defective
Credit not processed
Can I Change Uploaded Documents?
No. Once you submit your defense:
It is immediately sent to the scheme
You cannot edit, remove, or add documents
Double-check before submitting!
When Is a Chargeback Auto-Defended by AIO Pay?
AIO Pay automatically defends some chargebacks for you.
Auto-defense applies when:
You already refunded the transaction before the chargeback
Fraud dispute with liability shift (e.g., 3D Secure)
Chargeback has technical errors (e.g., sent late)
Chargeback not applicable to your MCC code
These chargebacks still appear in the Chargeback page.
(Some exceptions may apply.)
When Is a Chargeback NOT Auto-Defended?
AIO Pay will not auto-defend if:
Refund amount is less than 90%
Multiple partial refunds total less than 90%
Chargeback filed after 120 days (from expected delivery date)
Payment methods or reason codes that cannot be defended (SEPA, PayPal, Klarna, etc.)
Can I Refund a Dispute or Chargeback?
Once a chargeback is received:
The refund option is blocked to prevent double charges.
If you want to refund:
Accept the chargeback instead of defending/returning.
After a chargeback is reversed, refunds may be possible:
Scheme | Refund Allowed After Reversal |
Visa | Immediately |
Mastercard | After 45 days |
Diners | Immediately |
Discover | Immediately |
JCB | Immediately |
AMEX | Immediately |
Warning:
Even after reversal, the bank may still push forward and issue a second chargeback, causing double debit.
Best practice: Wait until the dispute is fully resolved before issuing refunds.
What Is a Fraud Chargeback?
A fraud chargeback means the cardholder claims:
They did not authorize the transaction
They did not participate in the purchase
Defending Fraud Chargebacks
Hard to win only defend if you have proof the cardholder authorized or participated.
Chargeback Flow by Payment Method (Q: should I change this to "flow by Klarna"? as we don't have that many payment methods)
Each card scheme has its own rules and processes.
Refer to the appropriate guideline for specific steps:
Visa chargebacks
Diners/Discover chargebacks
Mastercard chargebacks
China UnionPay chargebacks
JCB chargebacks
ELO chargebacks
American Express chargebacks
SEPA/Cartes Bancaires
Klarna
You’re Ready to Defend Chargebacks Effectively!
By understanding notifications, deadlines, documents, and auto-defense rules, you can take smarter actions and increase your chances of winning disputes.
AIO Pay gives you the tools—now you know how to use them like a pro.