A dispute (chargeback) isn’t just a refund. It’s a formal complaint filed with the card network. This guide walks through how Suby watches your dispute rate, what it costs you when one is opened, and how that risk is shared between you and Suby depending on whether you run Merchant of Record (MoR) or PayFac.
What counts as a dispute
A dispute is opened when a cardholder contacts their issuing bank, not you, not Suby, to reject a charge: fraud, “I didn’t authorize this,” “I canceled and was still billed,” “goods/services not as described.” The issuer pulls the funds back immediately and the amount is provisionally reversed. You can represent the case with evidence, but the dispute itself has already been counted against your rate, win or lose. This is different from a refund, which you or Suby initiate voluntarily before the cardholder escalates. A timely refund never touches your dispute rate. A dispute always does, even one you go on to win.It’s a customer relationship before it’s a ratio
Almost no dispute starts as fraud. It starts as a customer who didn’t get what they expected, couldn’t find how to cancel, or didn’t recognize the charge, and calling their bank felt faster than dealing with you. By the time it’s a dispute, they’ve already given up on reaching a human on your side. That’s why the single biggest lever on your rate isn’t a setting or a policy document. It’s how easy you make it to get a refund before the customer picks up the phone. A refund is always the cheaper, faster, and more repairable outcome, for both of you.You refund
- No dispute fee
- Doesn’t touch your 0.7 / 0.9 / 1.0% thresholds at all
- Resolved in minutes. The customer often stays a customer
- You stay in control of the outcome
It becomes a dispute
- $25 (Visa), $50 (Mastercard) fee, win or lose
- Counts against your rate immediately
- The relationship already broke: they chose their bank over you
- The issuer decides the outcome, not you