What is the lifecycle of a dispute? | Robinhood

What is the lifecycle of a dispute?

Disputes go through the following few phases before they’re resolved.

  1. Report

You can file a dispute directly from a transaction’s detail page. Select the transaction you’d like to dispute, and then select dispute.

  1. Investigation and chargeback

Our card processor uses the information from your report to start an investigation and reach out to the merchant. The process of reaching out to the merchant to reverse the transaction is called a chargeback. A chargeback is not possible in all cases, so if our card processor is unable to process a chargeback, your dispute claim will be investigated. If your initial report doesn’t include all the required details, our support team will email you directly.

You may be eligible and issued a temporary credit within 10 business days after the date of the initial dispute if the investigation is still in progress for transactions that are covered under Regulation E. If additional time is required, the investigation process can take up to 45 days (or for errors involving point-of-sale transactions or foreign-initiated transactions, it can take up to 90 days).

Disputed transactions that are not covered under Reg E may take up to 120 days to complete the process.

  1. Merchant response

The details of how a merchant responds will vary depending on details of individual disputes.

For example, generally what happens for unauthorized transactions is that our card processor reaches out to the merchant. The merchant could gather documentation to show the charge to be valid on their end. In which case, you might not win the dispute.

  1. Resolution

Depending on the merchant’s response and our card processor’s investigation, a decision on your dispute’s case (error or no error found) will be completed within 45/90 days for Reg E covered disputes and within 120 days for non-Reg E disputes.

Keep in mind

We encourage you to contact the merchant directly about your dispute for a quicker resolution. The more details and evidence of your dispute that you can provide, generally the faster the process will go.

Under the card network rules, the merchant has 90 days to respond to our dispute claim. This doesn’t necessarily mean that it will take 90 days to resolve your dispute, but just that by the network rules, it can take that long to get a response. Allow for up to 120 days to resolve the dispute.

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All investing involves risk.

Brokerage services are offered through Robinhood Financial LLC, (“RHF”) a registered broker-dealer (member SIPC) and clearing services through Robinhood Securities, LLC, (“RHS”) a registered broker dealer (member SIPC). Cryptocurrency services are offered through Robinhood Crypto, LLC (“RHC”) (NMLS ID: 1702840). Review a list of RHC licenses for more information.The Robinhood Money spending account is offered through Robinhood Money, LLC (“RHY”) (NMLS ID: 1990968), a licensed money transmitter. Review a list of our licenses for more information. Credit card products are offered by Robinhood Credit, Inc. ("RCT") (NMLS ID: 1781911 and issued by Coastal Community Bank, Member FDIC, pursuant to a license from Visa U.S.A. Inc.

The Robinhood Cash Card is a prepaid card issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard® International Incorporated. Mastercard and the circles design are registered trademarks of Mastercard International Incorporated.

RHF, RHY, RHC, RCT, and RHS are affiliated entities and wholly owned subsidiaries of Robinhood Markets, Inc. RHF, RHY, RHC, RCT, and RHS are not banks. Products offered by RHF are not FDIC insured and involve risk, including possible loss of principal. RHC isn’t a member of FINRA and accounts are not FDIC insured or protected by SIPC.

RHY is not a member of FINRA, and products are not subject to SIPC protection, but funds held in the Robinhood spending account and Robinhood Cash Card account may be eligible for FDIC pass-through insurance (review the Robinhood Cash Card Agreement and the Robinhood Spending Account Agreement).

Options trading entails significant risk and is not appropriate for all customers. Customers must read and understand the Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount.

Commission-free trading of stocks, ETFs and options refers to $0 commissions for Robinhood Financial self-directed individual cash or margin brokerage accounts that trade U.S. listed securities and certain OTC securities electronically. Keep in mind, other fees such as trading (non-commission) fees, Gold subscription fees, wire transfer fees, and paper statement fees may apply to your brokerage account. Please see Robinhood Financial's Fee Schedule to learn more.

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