# Processing Flow

## Receiving and Viewing Disputes

* When a dispute occurs, merchants will receive a notification via email about a new dispute that needs processing.
* Merchants can log into the merchant dashboard or view all disputes in the menu [Order Records - Disputes].


When clicking on a pending dispute, you can choose to either "Accept Dispute" or "Challenge Dispute":

**Accept Dispute**: You choose not to provide evidence or actively acknowledge that there is an issue with the transaction, willing to refund the funds to the cardholder.
**Challenge Dispute**: You believe the dispute is invalid and have evidence proving the transaction is legitimate and compliant, therefore submitting evidence materials to contest the dispute request.

Please note the processing time limit for disputes. Generally, you need to process and submit complete evidence materials within **15 calendar days**. If not processed within the time limit, you will no longer be able to initiate a "Challenge Dispute". You can check the processing deadline for each dispute in the dispute list.

## Processing Flow

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1. When PayKKa receives a dispute notification, it will immediately deduct the dispute principal amount + dispute processing fee from the merchant's account. At the same time, it will notify the merchant about the new dispute.
2. If the merchant chooses not to process the dispute, it will become expired after the processing validity period ends. There will be no further changes to the fund flow, as PayKKa has already completed the deduction when receiving the dispute.
3. If the merchant chooses to accept the dispute, it will become an accepted dispute. There will be no further changes to the fund flow.
4. If the merchant chooses to challenge the dispute, evidence needs to be submitted. Specific recommended evidence can be viewed on the challenge dispute page.
5. After the merchant submits the dispute, PayKKa will first review it. When the review is not approved, PayKKa will reject the evidence, and the merchant needs to modify and supplement the evidence according to the rejection comments before submitting again. Note that PayKKa will only give merchants one chance to modify and resubmit evidence.
6. When PayKKa approves the evidence, it will submit the evidence to the card network. Wait for the challenge result.
7. When the final challenge fails, the dispute process ends. There will be no further changes to the fund flow, as PayKKa has already completed the deduction when receiving the dispute.
8. When the challenge is successful, PayKKa will return the dispute principal amount to the merchant's account, but will not return the dispute processing fee.


## Testing Disputes in Sandbox

If you want to test disputes in the sandbox environment, you can contact us through your account manager or relevant integration group. We will generate disputes in the sandbox to meet your testing needs.