Skip to main content
Card class: Non-HeroCategory: Payment Gateway

At a glance

The percentage of Authorize.Net transactions in active dispute (chargeback or pre-arbitration) at any point in the period. Includes won-recently and lost-recently. The leading indicator that pairs with aut_chargeback_rate.
What it countsCOUNT(transactions in dispute or recently-resolved-dispute) / COUNT(settled) * 100. Includes Reason 4837 / 4853 / 4855 / 4863 cases, both pending merchant response and post-response.
API sourceAuthorize.Net Chargeback / Dispute API + FDS feed.
CurrencyCurrency-neutral.
Time window30D vsP.
Alert trigger>1% absolute.
Sentiment keygauge_inverse: good<=0.5, warn>1.0
Rolesowner, finance, operations

Calculation

Calculated automatically from your Authorize.net data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

Worked example

“Heartland Hardware Co.”, 30 days ending 02 May 26.
StateCountNotes
Active disputes (pending merchant response)4Within 7-day deadline
Pending issuer review (response submitted)6Awaiting verdict
Won (recently)3Defended successfully
Lost (recently, became chargebacks)6See aut_chargeback_rate
Total disputes in window19
Settled transactions in window2,964Denominator
Dispute rate0.64%
What the merchant should notice:
  1. 0.64% is in the warning band (above 0.5% healthy line). The 4 active disputes need response within deadline (typically 7 days from notification).
  2. Win rate so far: 3 won / 9 resolved = 33%. Below the 35 to 50% target. Heartland needs better defence evidence: AVS match data, signed delivery proof, IP and device fingerprint.
  3. Pending count of 6 will resolve over next 30 to 60 days. Some flip to “won”, some to “lost”. Forecast roughly 35% win rate based on current performance.
  4. Active disputes of 4 are the immediate workload. Each requires merchant response with evidence. Missing the deadline means automatic loss.
  5. Use Visa CE 3.0 / Mastercard CE 3.0 to push back on Reason 4837 (no authorisation). 60 to 80% win rate when prior-purchase evidence is included.

Sibling cards merchants should reference together

CardWhy pair it with Dispute Rate
aut_chargeback_rateThe lost-disputes view.
aut_refund_rateHigh refund rate prevents disputes (proactive resolution).
aut_top_payment_methodsNetwork-specific dispute patterns.
Stripe stripe_dispute_rate / PayPal pp_dispute_rateCross-PSP comparison.

Reconciling against the vendor’s own dashboard

Where to look in the Authorize.Net Dashboard: account.authorize.netReports → Chargebacks with status filter “Pending Response”, “Pending Review”, “Resolved”. Why our number may differ:
ReasonDirectionWhy
State transitionsEitherA dispute moving from pending to resolved between syncs flips status.
Time zoneBoundary days offPacific batch cut-off vs UTC.
Cross-connector reconciliation:
ComparisonExpectedWhy
aut_dispute_rate ↔ acquirer monthly statementSame sourceAcquirer feeds both views.

Known limitations / merchant FAQs

Difference between dispute and chargeback? A dispute is the active state: customer raised a complaint, merchant has time to respond. A chargeback is the resolved-against-merchant state: funds reversed. Disputes can also resolve in merchant’s favour (won) or be withdrawn before becoming chargebacks. Disputes are the leading indicator; chargebacks are the lagging. How long do I have to respond? Visa: 30 days from chargeback notification. Mastercard: 45 days. Amex: 20 days. Authorize.Net surfaces the exact deadline per case in the dispute interface. What evidence wins disputes? For “card not authorised” (4837): signed-delivery proof, AVS match, prior similar transaction history (CE 3.0). For “goods not received” (4855): tracking number, delivery confirmation, customer email correspondence. For “not as described” (4853): product photos, return-policy text, customer signed acknowledgement. Visa CE 3.0, Mastercard CE 3.0, what’s new? Both networks now allow merchants to defend “card-not-recognised” disputes by showing 2 prior similar transactions from the same customer (same IP within 365 days, plus same shipping address or device). Authorize.Net’s dispute interface guides the evidence submission. My win rate is dropping, why? Common causes: (1) defence evidence quality dropped (less detailed shipping records, missing AVS data), (2) issuer-side review tightened (some banks side with cardholder by default), (3) “friendly fraud” pattern shift (more sophisticated customers). 3DS-passed transactions, can they still be disputed? Most “card-not-authorised” reasons are blocked when 3DS passed (issuer liability). But “goods not received” or “not as described” disputes are unaffected by 3DS; the customer can still dispute service quality. Subscription disputes, mitigations? Clear cancel UX, recognisable billing-descriptor, monthly email reminder. Defence: customer’s subscription history, login records, terms-of-service acknowledgement.

Tracked live in Vortex IQ Nerve Centre

Dispute Rate is one of hundreds of KPI pulses Vortex IQ tracks across Authorize.net and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English. Start for free or book a demo to see this metric running on your own data.