How can I avoid the dispute fee?

The only way to avoid a dispute fee is to resolve the issue with your customer when they reach out (or during the inquiry stage) before they file a dispute at the bank. If you’re able to offer a refund or provide clarification early on, the situation might not escalate into a formal dispute.

Once a customer contacts their bank and files a dispute, the fee is automatically applied to your account, even if you issue a refund later. In such cases, the fee can’t be reversed.

However, if you believe the claim is false, you can challenge it by submitting supporting evidence through Zoho Payments within the stated period. If the dispute is resolved in your favor, the disputed amount and the fee gets reversed to your account. Learn more about challenging disputes.