Differences Between Disputes and Fraud

The primary difference between a fraudulent transaction and a disputable transaction lies in whether or not the cardholder knowingly and willingly initiated the transaction with the merchant in the first place.

Disputes can arise between a merchant and a cardholder for a variety of reasons, including but not limited to:

• overcharging the cardholder, 
• charging the cardholder for merchandise that wasn’t received, 
• charging the cardholder for a monthly subscription that was previously cancelled.

If the transaction was never authorized or initiated by the cardholder, a fraud claim may be filed.

Determining Which Type of Claim You Have

Answering the following questions will help you to determine whether your claim is a dispute or fraud.

• Did you give or loan your debit card to anyone? (You cannot make a claim of any kind if you voluntarily gave your card to another person.)

            Yes: You do not have a valid claim. No claims can be made if you

            gave your card to someone voluntarily.

• Do you personally know who made the transaction on your debit card?

            No: This would be fraud.

            Yes: Then this would be a card holder dispute.

• Is the transaction a result of signing up online for a “free trial”, however you used your debit card to pay for shipping or a similar charge?

            No: This would be fraud.

            Yes: This would be a card holder dispute.