As the merchant of record, Reach helps manage the chargeback and dispute process with the payment network (such as Visa or Mastercard) and payment channels. However, to properly protect yourself, it is essential to understand the differences between chargebacks and disputes, including requests for information (RFIs) and PayPal disputes.

Chargebacks and disputes

Chargeback

PayPal dispute

Request for information (RFI)

What makes them different?

While both chargebacks and payment method disputes (like PayPal disputes) serve a similar purpose—allowing customers to contest transactions—and can result in similar outcomes, there are key differences in their processes and handling:

Initiation point

For both chargebacks and disputes the customer is typically the first trigger. However, the party that formally begins the process can differ. For example, the cardholder's bank initiates chargebacks, while payment method disputes are initiated directly through the payment method (e.g., PayPal Resolution Center).

Governing body

The rules and regulations of the card networks (Visa, Mastercard, American Express, Discover, etc.) govern chargebacks. PayPal's specific dispute policies govern PayPal disputes.

Reason codes

PayPal has their own sets of reason codes that may differ from the card networks. Reach has created an aggregated set of reason codes that account for all the different systems. Reach's set of reason codes will be used in the chargeback notifications.

Evidence requirements

The type of evidence that is most effective can vary between chargebacks and payment method disputes.

Resolution process

The review and resolution process can differ. For example, a payment method such as PayPal acts as both the dispute's initial receiver and final decision maker. For chargebacks, in contrast, the issuing bank makes the final decision.