Contents
Dispute Process Overview
When a customer encounters issues with a purchase and has been unable to reach the merchant to resolve their issue directly, they may submit a dispute through Affirm. In these instances, Affirm will step in to review the evidence and determine if the merchant or customer is responsible for the repayment of the underlying financial instrument that funded the purchase.
The resolution process is as follows:
- Customers may open a dispute after shopping with you and have a 60 day limit to a post-purchase deadline. Customers are not responsible for making payments while the dispute is open, and Affirm withholds the disputed amount until the dispute is resolved.
- The merchant will be notified of the dispute via email and guided with relevant instructions to respond. The email notification will specify the deadline by which you must respond. Typically, you have 15 days from when you are notified of the dispute, but reminders will also be sent 7 days and 1 day before the due date.
Affirm will review the evidence provided by all parties and determine if the merchant or customer is responsible for the repayment of the underlying financial instrument. The adjudication outcome will be communicated to both the customer and the merchant within 60 days of the dispute being opened. Card network processes may differ from this policy.
Dispute Reasons
Customers may initiate a dispute for various reasons. The dispute reason will be listed in the email notice you receive and may include the following:
| Dispute reason | Description |
| Product not received | The customer claims they have not received a product they purchased from you. |
| Product unacceptable | The customer claims that a product they received is incorrect, damaged, or otherwise fails to meet the listed product description. |
| Cancellation or return not processed | The customer claims that they were charged for a product or service they canceled or returned in a manner consistent with the merchant’s stated refund and return policy in effect at the time of the customer’s purchase. |
| Incorrect charge | The customer claims that they were charged an incorrect amount. |
| Duplicate charge | The customer claims they were charged multiple times for an item or an order. |
Note: Evidence is no longer required of the customer for purchases never delivered or purchases delivered later than promised. In these cases, if you agree with the customer's claim, you can simply accept the dispute by clicking the ‘refund loan’ button in the dispute webform (access the webform via clicking ‘take action’ in the dispute email).
Merchant Evidence Examples
The table below illustrates common examples of evidence that a merchant may share to counter a customer dispute:
| Dispute type | Examples of merchant rebuttal evidence |
| Product not received |
|
| Product unacceptable |
|
| Cancellation or return not processed |
|
| Incorrect charge |
|
| Duplicate charge |
|
| Other |
|
Resolution
Affirm will resolve all disputes in favour of the party that, in Affirm’s reasonable view, best substantiates their claim(s). If Affirm resolves a dispute in favour of the merchant, the merchant will not be liable for any amount of principal or interest related to the disputed transaction. Any funds withheld related to the disputed transaction will be released. Note, that after further review and based on evidence available, Affirm may alter a previous decision, whether during or after the term of the applicable Merchant Agreement.
If Affirm resolves a dispute in favour of the customer, (a) Affirm will refund the disputed amount to the customer, (b) the merchant will reimburse Affirm for such amount, and (c) merchant will pay the applicable amount set forth below (‘Dispute Fee’) to Affirm. The Dispute Fee may be collected, at Affirm’s discretion, either via (i) debit from merchant’s bank account; (ii) invoice to merchant (which invoices are payable 30 days after receipt thereof); or (iii) deduction from future Payouts due under the Agreement. For the avoidance of doubt, merchant authorises Affirm, its Affiliate, or its bank partner(s), and will ensure that Affirm, its Affiliate, and/or its bank partner(s) are authorised by the bank holder of the applicable Bank Account, to debit the applicable Bank Account for the Dispute Fee. Any amount under this Section that Affirm is unable to collect or merchant otherwise fails to pay in accordance with this Agreement will be considered past due, and merchant will incur an interest charge on the aggregate outstanding Past Due Amounts for each month such amounts are past due equal to the lesser of (a) 1.50%, or (b) the maximum amount permitted by Applicable Law. Notwithstanding anything to the contrary in the Agreement Dispute Fees and any Fees that were charged for the applicable disputed Successful Transaction will be non-refundable.
| Territory | Dispute Fee |
| United States | $15.00 |
| Canada | $20.00 |
| United Kingdom | £10.00 |
For more information on our disputes process, feel free to visit the following article: Webform Disputes.
FAQs
What happens when a dispute is adjudicated in my favour?
If Affirm resolves a dispute in your favour, you will not be liable for any amount (of principal or interest) related to the disputed transaction. Any funds withheld related to the disputed transaction will be released.
What happens when a dispute is adjudicated in favour of my customer?
If a dispute is resolved in favour of your customer, Affirm will refund the disputed amount to the customer. In such an event, the merchant will be responsible for reimbursing Affirm for the amount refunded.
Can I update the amount I refunded my customer?
Note that processed refunds are not reversible. Be sure to confirm the refund amount before submitting. If you would like help refunding your customer an amount other than what is being disputed, contact us at resolutions@affirm.com.
How can I view the evidence provided by the customer?
After navigating to the Dispute Detail Page, click on the file(s) under the Attachments section which will trigger a download to your device.
How long do I have to respond to a dispute?
The email notification and Disputes Detail Page will specify the deadline by which you must respond. Typically, you have 15 days from when you are notified of the dispute, but reminders will also be sent 7 days and 1 day before the due date.
Once I submit evidence, when can I expect to hear back?
Affirm will review the case and communicate our resolution decision via email within 60 days of the dispute being opened.
Why am I seeing multiple dispute attempts on the same transaction?
Customers are able to open multiple disputes on the same transaction. Respond to the dispute with evidence to support your case, even if it is the same evidence provided in response to previous dispute attempts.
Why might a dispute omit customer evidence?
After navigating to the webform, you are able to click each line item under the Overview > Customer Evidence section which will trigger a download to your device. Note that not all cases will include information uploaded by customers but may only provide an explanation of the dispute.
Why are there disputes listed in my Settlements Report that I did not receive email communications for?
Affirm only sends you a dispute initiation notice when action is required from you. As a result, you may see disputes populating in your report while we gather more information from your customer after they initiate the dispute and before we request your response.
How should I manage my disputes if I have multiple stores/accounts with you?
Note that an aggregate Disputes Dashboard view is not currently available. In the US, to manage your disputes navigate to the individual store within your Merchant Portal to view associated disputes by clicking your business name in the upper left corner under the Affirm logo. Then, click on ‘Disputes’ within the left side bar to view disputes connected to that store and take action.