Shopify Ops Glossary
Dispute
A formal claim by a customer challenging a transaction.
Definition
A dispute is initiated when a customer contacts their bank to challenge a charge. It begins as an inquiry, which if not resolved becomes a chargeback. Responding to disputes before they escalate to chargebacks saves money.
Why It Matters for Shopify Brands
Early dispute resolution (before chargeback) is significantly cheaper and faster than fighting a chargeback after it has been filed. Monitoring for disputes and responding immediately is a key ops practice.
Benchmarks
Merchants who respond to disputes within 24 hours avoid escalation to chargeback in approximately 30–50% of cases.
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