How do chargebacks differ from inquiries in Stripe?

How do chargebacks differ from inquiries in Stripe?

• A. They debit the disputed payment amount from the Platform's balance immediately
• B. They credit the customer's balance
• C. They do not affect balances
• D. They delay impact until investigation completes

Answer: (A)

When a cardholder challenges a payment, Stripe treats it as a chargeback, and the system immediately reserves the disputed amount from the Platform’s balance to cover a potential return to the cardholder. This upfront debit ensures that funds are available if the dispute resolves in the cardholder’s favor. Inquiries, on the other hand, are information-gathering steps during the dispute process. They don’t trigger an automatic debit of funds from the platform’s balance; the balance is affected only if the dispute escalates to a chargeback and a decision is made.

When a cardholder challenges a payment, Stripe treats it as a chargeback, and the system immediately reserves the disputed amount from the Platform’s balance to cover a potential return to the cardholder. This upfront debit ensures that funds are available if the dispute resolves in the cardholder’s favor.

Inquiries, on the other hand, are information-gathering steps during the dispute process. They don’t trigger an automatic debit of funds from the platform’s balance; the balance is affected only if the dispute escalates to a chargeback and a decision is made.