Cyncly Payments Dispute Overview and Guide

This article explains how dispute processing works in Cyncly Payments with RFMS, and shares practical steps to help reduce chargebacks and liability.

This guidance is provided for general informational purposes only. It is based on documentation from credit card companies (for example, Visa, Mastercard, Discover, and American Express), so Cyncly is not responsible for errors or omissions. Processes and requirements may change, and outcomes vary by case. Review and respond to each chargeback based on its specific details.

Players in the Chargeback Process

Chargebacks are disputes between a customer and your business. The customer’s bank (the issuing bank) is involved, and several other parties may also participate.

The parties shown in the image above are part of the dispute process, but their level of involvement can vary by case. The more parties involved, the longer resolution can take. Often weeks, sometimes months. While the dispute is open, the funds tied to that transaction may be unavailable until the claim is resolved.

Dispute Overview

A dispute is a way for a cardholder to challenge a card transaction and request that the funds be returned. The issuing bank collects details from the cardholder and decides whether the situation qualifies as a dispute.

If the issuing bank moves forward, it sends the dispute through the card networks to the acquirer for review. The acquirer researches the transaction and may contact the processor for supporting details. If the dispute is upheld, the disputed amount may be withdrawn from the merchant’s account and the merchant is notified. In many cases, you won’t know a dispute is coming until it is filed.

Some disputes can be initiated by the issuing bank without input from the cardholder. These disputes are rarely reversed.

 Note: A chargeback fee may apply when a dispute is filed.

Why Disputes Occur

Disputes can happen for several reasons, including:

• Fraud
• Processing errors, such as an incorrect amount charged, a duplicate charge, the wrong card charged, or charges for items not ordered
• Cardholder concerns (for example, confusion about the charge or dissatisfaction)
• Product/service issues, such as the item not matching what was advertised or services not provided as expected
• Fulfillment issues, such as inventory or shipping errors, or the wrong color/material delivered
• Other errors by parties involved in processing, including the acquirer, processor, or issuing bank

Responding to Disputes

Step 1: Find the dispute in RFMS

In RFMS, go to: Order Entry > Reports > Payments Flex > Payments > Disputes

Select the dispute line item to open the payment details. Scroll down to choose to either Accept or Counter the dispute.

If You are Countering a Dispute

Countering a dispute typically involves three steps: Review the dispute, Collect evidence, and Upload & submit that evidence.

Step 2: Review the dispute

In this step, you provide context to the issuing bank. You’ll be asked to:

• confirm dispute details
• briefly describe the product/service
• select high-level indicators (for example, product/service type and delivery method)

Best practices:

• be factual and concise
• match your explanation to the dispute reason
• avoid emotional or speculative language

When finished, select Save & Continue.

Step 3: Collect evidence

In this step, you provide additional details for the issuing bank to consider, including:

• additional information about the transaction
• customer details

Step 4: Upload documents and submit

Upload supporting documents, review your submission, and submit the evidence.

Accepted file formats: PDF, JPG, JPEG, PNG

Upload size limit: 5MB total across all files

Setting Up Dispute Email Notifications

To make sure your business is notified when a dispute is filed, confirm that at least one email address is entered in the Disputes notification field.

In RFMS, go to: Order Entry > Reports tab > Payments Flex > Merchant tab.
Then:

1. Select the Merchant ID line item.
2. Scroll to the Notifications section and select Edit.
3. In the Disputes field, enter the email address(es).
   • After each address, select Add (or press Enter) to save it to the list.
4. Select Save.

Best practice: Add more than one email address (for example, accounting and a manager) so disputes aren’t missed if one person is out of office.

Best Practices

Use these best practices to reduce fraud, processing errors, and customer disputes.

Card-present (in person)

Card-present transactions occur when the customer physically presents the card and it’s swiped, inserted, or tapped. These are generally lower risk because you can inspect the card and, in some cases, verify identity.

Best practice	What to do
Authorization	Don’t complete a transaction without an approved authorization.
Declined authorization	Don’t complete a transaction if the authorization request is declined.
Expired card	Don’t accept a card after its “Good Thru” or “Valid Thru” date.
Card imprint for key-entered transactions	If you must key-enter a card-present sale, get an imprint of the card on the receipt using a manual imprinter.
Legibility	Before completing the sale, make sure the receipt is complete, accurate, and legible. Illegible receipts may be returned because they can’t be processed properly.
Fraudulent card-present transaction	If the cardholder has payment information but not the physical card, don’t accept the transaction. Even with approval, it may be disputed if it’s fraudulent.

Card-not-present (phone/online)

Card-not-present transactions occur when the physical card is not presented (for example, phone or online payments). These are higher risk because stolen card details are easier to use.

Best practice	What to do
Reduce risk for phone orders	For phone orders (especially from new customers), restrict orders to in-person pickup or delivery when possible.
Verify identity at pickup	At pickup, check the customer’s driver’s license and confirm it matches the name on the card used for the purchase.
If the customer won’t comply	If the customer is unable to comply with ID verification, don’t process the transaction to reduce the risk of a chargeback due to fraud.
Use AVS and CVV/CVC	Use Address Verification Service (AVS) and Card Verification Value (CVV) / Card Verification Code (CVC) when available. (This is the 3–4 digit number on the card.)
Make refund policy explicit online	Ensure your website clearly communicates your refund policy before checkout, and require an acknowledgement (click-to-accept, checkbox, or electronic signature).

Additional practices (all transactions)

Best practice	What to do
Recognizable business name on statements	Make sure customers can recognize your business name on their statement. If you have questions about your billing descriptor or want to change it, contact Cyncly Support.
Business name legible on receipts	Make sure your business name is legible on receipts.
Out-of-stock items	If an item is out of stock or no longer available, notify the customer in writing. Don’t substitute another item unless the customer agrees.
Refund policy disclosed at time of transaction	Disclose the refund policy for returned/cancelled merchandise or services at the time of the transaction.
Refund policy shown on receipt	Ensure your refund policy is clearly stated on your receipt (for example: no refunds, exchange only, in-store credit only).
Customer service responsiveness	Respond promptly and make contact information easy to find.
Social media engagement	Stay engaged on social media channels where customers may reach out.
Dispute alerts	Set up alerts so you’re notified when a dispute is initiated, giving you an opportunity to respond quickly.

Dispute Lifecycle

Use this flow chart to understand what happens after a dispute is filed and why resolution can take time. Not every dispute goes through every step. Some end quickly if you accept the dispute, while others move into additional review stages before a final decision is made. The picture below is a high-level reference; always follow the instructions and deadlines shown in your dispute case.

Dispute Timing

For many merchants, chargebacks can be frustrating and confusing. One reason is that each card network sets its own rules and timelines for the dispute process. While the overall process is similar, specific requirements and timeframes can vary by network.