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# Respond to a dispute

When a customer disputes a charge with their bank or card issuer, you have a limited window to respond. You can accept the dispute or defend it with evidence, and you do both inside Tabs—there's no separate processor dashboard to sign into.

This guide covers disputes on Tabs Pay.

## Before you begin

* Have your supporting evidence ready—the invoice, proof of delivery, your terms, and any correspondence with the customer.

> **Warning**
>
> The response deadline is set by the payment network, not by Tabs. A case that passes its deadline without a response is forfeited with no appeal. Respond to a dispute as soon as you're notified.

## Step 1: Open the dispute

Tabs emails you when a dispute opens and when the case resolves. From **Payments > Disputes** in Tabs, open the dispute you want to work on.

The Disputes view has three tabs:

| Tab                | What it holds                                |
| :----------------- | :------------------------------------------- |
| Chargebacks        | Open disputes that need a decision from you  |
| Fraud alerts       | Early fraud signals that aren't disputes     |
| Ongoing and closed | Cases in progress and cases already resolved |

Select a row to open it. The detail view shows the dispute reason, the amount, the status, the date it opened, and the date your response is due.

## Step 2: Accept or defend

Read the reason the customer gave, then choose:

* **Accept** the dispute to concede the case. The money stays with the customer and the case closes.
* **Defend** the dispute to contest it. Continue to step 3.

## Step 3: Submit your evidence

If you're defending, select a defense reason and upload your supporting evidence. What counts as persuasive evidence depends on the reason given—a "services not received" dispute calls for proof of delivery, while an "unrecognized charge" dispute calls for the invoice and a record of the customer's agreement.

## Step 4: Reflect the outcome on the invoice

Tabs tracks the case through to resolution and emails you the outcome.

If you **win**, the disputed amount is credited back to you and the invoice stands for card payments. No further action. ACH payments are reversed immediately so you will have to collect the payment and re-authorize.

If you **lose**, remove the payment from the invoice. This reopens the invoice to sent or overdue so your books match what you actually collected. From there, issue a [credit memo](/collect-payments/credit-memos) against the invoice.

## How ACH disputes differ

A disputed ACH payment is reversed immediately, without waiting for an outcome. A disputed card payment is held back and returned to you if you win. The practical effect is that an ACH dispute hits your balance right away.

## What fraud alerts are

A fraud alert is an early warning that a payment was flagged as suspicious. It isn't a dispute: no money is withdrawn and there's nothing you're required to do. Each alert shows the payment method, the reason, the amount, and the date.

Treat an alert as a prompt to decide. [Refunding the payment](/collect-payments/tabs-pay/refunds) before the customer disputes it avoids a chargeback.

## Cases you don't need to act on

Some disputes are defended automatically on your behalf by Tabs' processor. You may see cases in your list you never acted on, sometimes already resolved. Those need nothing from you.

## Reduce disputes before they start

A large share of disputes come from customers who don't recognize a charge on their statement. Your statement descriptor is the 22-character string they see, and it's the cheapest lever you have. This is set once during your Tabs Pay setup.

> **Tip**
>
> Set a descriptor your customers will recognize—your trading name rather than a legal entity name or an abbreviation. You set it when you [set up Tabs Pay](/tabs-pay).

## Next steps

* [Issue a refund](/collect-payments/tabs-pay/refunds)
* [Balance accounts and payouts](/collect-payments/tabs-pay/balance-accounts-and-payouts)
* [Create and apply credit memos](/collect-payments/credit-memos)