While it is not common to see chargebacks, or payment disputes, it does happen. When it does, it can be a cumbersome process. To handle disputes with a third-party payment processor like Stripe or PayPal, your organization typically has to work with representative(s) of that processor, which is far from ideal. One of the benefits of using Payments as your processor is the ability to manage those disputes directly without having to go through a third party, which means the process is smoother.
Where to Manage Disputes
Go to your Payments dashboard and then on the left-hand side, click "Disputes."
From this screen, you'll see a list of disputed payments and information about those disputes. Usually, these rows appear when a cardholder requests from their bank to have their funds from a transaction returned and the bank has responded by inquiring from the merchant (you). This means that your organization must respond with supporting documentation if you have determined that the dispute is invalid.
If you click the Transaction ID, it will take you to the Payments screen and pull out details regarding the payment being disputed.
You'll notice there is a Dispute Hold for this payment; this will be held until there is a resolution.
To challenge the dispute, click the icon in the Upload Docs column on the Disputes screen to contribute any supporting documentation - this can include materials like receipts, invoices, etc. Be sure to respond by the date listed.
What happens next depends on the what the cardholder's bank decides. The money will either be returned to the cardholder or your organization, depending on the outcome of the dispute; this is why it is important to submit thorough documentation of the transaction.