Disputing a transaction

If you purchased a good or service that did not meet expectations, was not delivered, or was incorrectly charged, you may request a dispute. Disputes are submitted through the Visa network and are subject to Visa’s dispute resolution process. Karat does not provide separate purchase protection coverage beyond the Visa dispute process. However, our team can assist you in preparing and submitting a dispute to Visa. Only captured (settled) transactions can be disputed. Pending, refunded, or reversed transactions are not eligible. Before contacting us, please follow the steps below.

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Dispute reasons

When opening a dispute, you’ll be asked to select the reason that best describes your situation:

• Fraudulent: You did not make this purchase. If you select this reason, the card will be automatically frozen so it can’t be used for further transactions while we investigate. Freezing applies only to fraud disputes; the card is not canceled or replaced automatically. If you believe the card has been compromised, you should also request a replacement card.
• Not received: Merchandise was not received or the service was not rendered.
• Duplicate charge: You were charged more than once for the same purchase.
• Not as described: The merchandise or service did not meet the expected standard or was different than advertised.
• Previously canceled: You canceled the purchase but were still charged.
• Other: The dispute does not fit any of the reasons above. Examples include receiving counterfeit merchandise or being charged an incorrect amount.

1. Contact the merchant. In most cases, the fastest way to resolve an issue is by contacting the merchant directly. Merchants are often willing to issue a refund when you did not receive what you paid for. We recommend reaching out by email whenever possible, as it creates a written record of your attempt to resolve the issue. If you are unable to reach the merchant on your first attempt, continue trying. Disputes are more likely to be denied if there is no evidence that you attempted to resolve the matter directly with the merchant.
2. Review the merchant’s refund policy. Check the merchant’s posted refund policy before initiating a dispute. If the merchant failed to follow their own stated policy, take a screenshot of the policy as evidence. If the merchant acted in accordance with their published refund policy, the dispute is unlikely to be successful. Resolving the issue directly with the merchant may lead to a better outcome.
3. Review terms of service. For subscriptions or services, review the Terms of Service or cancellation terms. If the transaction complied with the agreed-upon terms, the dispute may not be successful.
4. Collect your evidence. Strong documentation improves the likelihood of a successful dispute. Helpful evidence includes:
   • Email correspondence with the merchant
   • Call logs showing attempts to contact the merchant
   • Receipts or order confirmations
   • Refund policies
   • Terms and Conditions
   • Contracts or service agreements
   • Photos (if applicable)
   Provide a detailed explanation of what occurred, including dates and timelines.

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Submitting a Dispute

You can start a dispute directly from your dashboard by opening the transaction and selecting Dispute this transaction. You’ll be asked to choose a reason, provide an explanation, and optionally attach up to 3 files as supporting evidence, such as receipts or merchant correspondence. If a dispute has already been submitted for a transaction, it shows a Dispute submitted label instead. If multiple charges are related to the same issue (for example, several unauthorized charges from the same merchant), you can include them on the dispute when prompted. For fraud disputes, Karat shows other charges on the same card from the previous 7 days as Related charges that you can add to the same dispute. If you’ve made reasonable efforts to resolve the issue directly with the merchant and were unsuccessful, contact us to begin the dispute process. We will:

• Review your documentation
• Submit the dispute to the card network on your behalf
• Reach out if we need more information
• Notify you once a resolution is reached

In some cases, a temporary credit may be issued while the dispute is under review. If a temporary credit is not provided, you are still responsible for making at least your required payment by the due date.

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Responding to requests for information

While reviewing your dispute, our team may email you to request additional information. You have 10 US banking business days from the date of the request to respond. If we do not receive a response by the deadline, the dispute is automatically closed and you will receive an email confirming the closure. To keep the dispute open, respond with the requested information before the deadline stated in the email. _{Karat is a fintech company, not an FDIC-insured bank. Banking and Card services provided by Grasshopper Bank, N.A., First Internet Bank of Indiana, and Cross River Bank, Members FDIC.}