Dispute vs. Fraud
Dispute vs. Fraud: What’s the Difference?
When dealing with unauthorized or questionable charges on your account, understanding whether it’s a dispute or fraud is crucial.
Payment Dispute
- A dispute occurs when you question a charge but the transaction itself is legitimate.
- Common reasons for disputes: incorrect amounts, services not rendered, or dissatisfaction with the product/service.
- The bank contacts the merchant to resolve the issue, often requiring proof from both parties.
How Banks Handle Each Case
Knowing the distinction helps you communicate effectively with
your bank and resolve issues faster.
Fraud
Prioritizes securing your account, issuing refunds, and investigating the fraudulent activity.
Payment Fraud
- Fraud happens when an unauthorized party makes a transaction using your account or card.
- Examples include stolen credit card numbers, identity theft, or forged checks.
- Fraud cases trigger immediate investigation by the bank, often leading to reimbursement if fraud is confirmed.