Issuer Dispute

An issuer dispute is a formal challenge that a card issuer raises against a transaction, normally after its cardholder reports a problem such as an unrecognised charge, goods that never arrived or a cancelled subscription that was still billed. The issuer reviews the complaint, picks a dispute reason allowed by the card network and submits a chargeback to the merchant's acquirer within the network's time limits. The acquirer then passes the case to the merchant, who can accept the loss or respond with evidence. The term distinguishes disputes started on the issuing side from an acquirer dispute or a merchant dispute, and from cases in which the cardholder contacts the merchant directly. Issuers may also raise disputes on their own initiative, for example after confirming fraud on a compromised card, as part of wider dispute management.