> ## Documentation Index
> Fetch the complete documentation index at: https://docs.xpaycheckout.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How disputes work

> The dispute lifecycle, from a customer complaint to a final outcome.

## How a dispute occurs

1. Customer raises a complaint with their bank.
2. The bank initiates a chargeback request.
3. xPay marks the transaction as **DISPUTED**.
4. Funds are held until resolution.
5. Merchant is notified to respond with evidence.

<Note>
  A timely and thorough response increases the chances of reversing the chargeback.
</Note>

## Dispute status lifecycle

```mermaid theme={null}
graph LR
A[DISPUTED] --> B[DISPUTE_UNDER_REVIEW]
B --> C{Outcome}
C -->|DISPUTE_WON| D[Funds Released]
C -->|DISPUTE_LOST| E[Funds Deducted]
```

**Status Definitions:**

| Status                 | Description                                                  |
| ---------------------- | ------------------------------------------------------------ |
| `DISPUTED`             | A dispute has been raised and is awaiting merchant action.   |
| `DISPUTE_UNDER_REVIEW` | Evidence submitted; the bank is reviewing the case.          |
| `DISPUTE_WON`          | The bank ruled in your favor — funds are returned.           |
| `DISPUTE_LOST`         | The bank ruled against you — funds are permanently deducted. |

<Note>
  All status changes are visible in real-time in the dashboard.
</Note>