Know the latest Stripe Time Limit about Chargeback Disputes to avoid Delay

‍Are you prepared to handle chargeback disputes within Stripe’s strict time limits? 

Missing a deadline means losing revenue, increased dispute ratios, and potential restrictions on your payment processing. 

Chargebacks are a growing concern for businesses, with financial losses with merchants facing penalties, operational costs, and damage to their reputation. 

Knowing the time limits imposed by Stripe is essential to ensuring a timely and effective response to disputes.

Our guide breaks down the latest Stripe chargeback time limits for 2025, explaining key deadlines at each stage of the dispute resolution process. 

By knowing these limits, merchants avoid unnecessary delays, and improve their chances of winning disputes. Additionally, we provide expert insights into crafting strong dispute responses and proactive strategies to minimize chargebacks before they occur.

What is a chargeback time limit?

A chargeback time limit is a specific period within which a cardholder, issuing bank, or merchant must take action in a chargeback dispute. These time limits vary depending on the payment network (e.g., Visa, MasterCard, American Express, Discover) and the type of chargeback claim.

For merchants, understanding chargeback time limits is critical to responding within the allowed timeframe. If a response is not submitted within the deadline, the chargeback is automatically upheld, resulting in lost revenue.

Stripe, as a payment processor, follows the chargeback time limits set by card networks. Merchants using Stripe must be aware of these deadlines to avoid disputes being ruled in favor of the cardholder due to delayed responses. 

Each chargeback stage—including filing, merchant response, and further arbitration—has strict time constraints to be met for a dispute to be valid.

By keeping track of chargeback deadlines, merchants will improve their chances of successfully contesting disputes and minimizing chargeback losses.

Stripe chargeback time limit as of 2025

When a cardholder initiates a dispute, the card network debits Stripe for the disputed payment and related dispute fees. Stripe, in turn, debits your Stripe balance for the disputed amount plus a dispute fee. 

You have a limited amount of time, usually between 7 to 21 days depending on the card network, to respond to the card issuer with evidence supporting the legitimacy of the transaction. 

Failing to respond within this timeframe results in an automatic loss of the dispute, leading to forfeiture of the transaction amount and associated fees.

(Source)

After you submit evidence, the cardholder's issuing bank typically has between 60 to 75 days to review the information and make a decision. The entire dispute process usually takes up to 2 to 3 months to resolve. 

Why does Stripe impose a time limit on sellers?

Stripe enforces these time limits to comply with the regulations set forth by card networks and to ensure a fair and efficient dispute resolution process. 

These deadlines provide a structured timeline for all parties involved—cardholders, issuing banks, and merchants—to present their cases and evidence.

For merchants, adhering to these time limits is essential. Delays or failures in responding within the designated timeframe result in an automatic loss of the dispute, leading to financial losses and potential negative impacts on the merchant's standing with Stripe and the card networks.

By imposing these time limits, Stripe ensures that disputes are handled promptly and efficiently, maintaining the integrity of the payment ecosystem and fostering trust among all parties involved.

Other time limits in the chargeback resolution process

Apart from the initial chargeback response deadline, several other time limits exist throughout the chargeback resolution process. 

These deadlines vary based on the payment network but follow a structured timeline to ensure disputes are resolved efficiently.

1. Cardholder Dispute Filing Window

Cardholders typically have 60 to 120 days from the transaction date to file a chargeback, depending on the card network and the reason for the dispute. Some cases, such as fraud-related disputes, may allow longer filing periods.

2. Merchant Response Deadline

Once a chargeback is issued, merchants have 7 to 21 days to submit evidence defending the transaction. This timeframe is determined by the card network and the payment processor (such as Stripe). 

If a response is not submitted in time, the dispute is automatically lost.

3. Issuing Bank Review Period

After receiving the merchant’s evidence, the cardholder’s issuing bank typically takes 60 to 75 days to review the case and make a decision. During this period, the bank assesses the provided documents and determines whether to uphold or overturn the chargeback.

4. Arbitration Timeframe (If Applicable)

If the merchant loses the chargeback and believes the decision was incorrect, they may escalate the dispute to arbitration through the card network. This step comes with additional fees and must be initiated within 10 days of the chargeback ruling. 

The arbitration process itself can take several months, typically 60 to 90 days, for a final decision.

5. Refund and Settlement Adjustments

If a chargeback is upheld, the disputed amount is permanently deducted from the merchant’s account. If the chargeback is reversed, the funds are returned to the merchant within a few business days to a few weeks, depending on the card network and acquiring bank policies.

How to craft the winning response in the provided timeframe?

A winning chargeback response should include clear, compelling evidence that proves the legitimacy of the transaction and addresses the reason for the dispute.

1. Understand the Chargeback Reason Code

Each chargeback comes with a reason code assigned by the card network (Visa, Mastercard, Amex, Discover). 

Understanding this code helps tailor the response with relevant evidence. Common chargeback reasons include fraud, product not received, and processing errors.

2. Gather Strong Supporting Evidence

Merchants should provide all necessary documentation to prove the transaction was valid. Key evidence includes:

• Proof of customer authorization – Transaction receipts, signed agreements, or authentication records.
• Delivery confirmation – Tracking numbers, shipping details, or proof of digital product access.
• Customer communication – Emails, chat logs, or support tickets showing the customer received and acknowledged the product/service.
• Refund policy compliance – Terms and conditions proving the merchant followed their stated policies.

3. Format the Response Clearly

A well-structured chargeback rebuttal should include:

• A concise opening statement summarizing why the dispute should be reversed.
• Relevant documentation presented in a logical order, with clear labeling.
• A professional and factual tone, avoiding emotional or opinion-based arguments.

4. Submit the Response Within the Deadline

Since Stripe provides a short timeframe (typically 7 to 21 days) to respond, merchants must act quickly. Delays result in automatic loss of the chargeback, so setting up internal processes to respond efficiently is critical.

5. Leverage Chargeback AI Representment

AI-driven chargeback management solutions, like ChargePay’s AI-powered representment, streamline the dispute process by:

• Automatically detecting chargeback reason codes and generating tailored responses.
• Collecting and organizing compelling evidence to strengthen the case.
• Submitting disputes within the required deadline, reducing manual effort and errors.
• Learning from previous cases to continuously improve success rates.

By utilizing AI-powered representment tools, merchants can increase their win rate, recover more revenue, and reduce the administrative burden associated with chargeback disputes.

Prevent Stripe chargebacks to avoid time limit hassle

To minimize the challenges associated with chargeback time limits, proactive prevention is essential. ChargePay is an AI-automated chargeback enterprise solution that integrates seamlessly with Stripe, enabling businesses to prevent disputes efficiently.

ChargePay's AI model identifies chargeback fraud and counters it automatically, protecting your business from fraudulent activities. This continuous learning process ensures that your chargeback prevention strategy evolves with emerging threats, providing robust protection for your revenue.

By leveraging AI, ChargePay automatically creates winning representments for new chargebacks, allowing merchants to respond in real-time and achieve faster resolutions. This proactive approach not only helps in winning disputes but also in reclaiming lost revenue, thereby reducing the financial impact of chargebacks.

By integrating ChargePay into your Stripe account, you automate the chargeback management process, reduce manual effort, and focus more on growing your business. 

This integration streamlines operations and enhances your ability to maintain a healthy payment processing environment.

Explore our app on the Stripe marketplace.