Chargeback: what happens when a customer disputes a restaurant order
Updated October 20, 2026
A chargeback is when a customer's bank takes back a card payment after the customer disputes it, for example "I never got my order." The money comes out of the restaurant's payment account at once, with a dispute fee, and comes back only if the restaurant sends evidence and the bank decides in its favor. On online orders paid by card, the restaurant is the merchant, so the dispute lands with the restaurant.
In short
- Refund = you give the money back. Chargeback = the customer's bank takes it back, with a fee to you.
- On Stripe in the US, receiving a dispute costs $15, and countering it costs another $15 (returned if you win).
- Timeline: disputes can usually be filed up to 120 days after the payment, you have about 7–21 days to respond, and a decision takes 2–3 months in all.
- On Menuthere card payments go to the restaurant's own Stripe account outside India, so disputes are handled in Stripe.
Chargeback vs refund
| Refund | Chargeback | |
|---|---|---|
| Who starts it | The restaurant | The customer, through their bank |
| Fee | Card fees usually not returned | A dispute fee ($15 on Stripe in the US) on top |
| Who decides | You | The card issuer (the customer's bank) |
| Affects your account | No | Raises your dispute rate with the card network |
| Time | Minutes | Weeks to months |
A refund issued before a dispute is filed usually costs less than a chargeback, which is why Stripe suggests refunding some small charges flagged as likely fraud.
How a chargeback works on Stripe
- The dispute is filed. Stripe notifies you and debits the disputed amount plus the dispute fee from your Stripe balance. While it's open, you can't refund the payment outside the dispute.
- You respond. You accept it, or counter it with evidence, usually within 7–21 days depending on the card network.
- The bank decides. The issuer usually takes 60–75 days after your evidence. The whole process can take 2–3 months. If you win, the money comes back to you.
What it costs: a worked example
A customer disputes a $42 delivery order.
| If you… | You lose |
|---|---|
| Accept the dispute | $42 + $15 dispute fee = $57 |
| Counter and lose | $42 + $15 + $15 countered fee = $72 |
| Counter and win | $15 (the received fee is not returned; the countered fee is) |
The card processing fee on the original payment is a further cost. (Stripe US fees, see Sources; amounts illustrative.)
Why restaurants get chargebacks, and what helps
| Reason (Stripe category) | Typical restaurant case | Evidence that helps |
|---|---|---|
| Fraudulent / unrecognized | A stolen card, or a guest who doesn't recognize the charge | A clear name on statements; the order's details and the customer's phone |
| Product not received | "My delivery never came" | Order times, the driver assigned, delivery status updates, messages with the customer |
| Product unacceptable | Wrong or cold food | The order lines, any refund or remake offered, your policy |
| Duplicate | Charged twice for one order | Records showing two separate orders, or a refund already given |
| Credit not processed | A refund was promised but not made | The refund, or your stated policy |
Stripe's guidance for "product not received" is to show the product was delivered, or that you already refunded. Keep each order's record, and answer customer messages quickly: a reply often stops a dispute before it starts.
How Menuthere handles card payments and disputes
- Your own Stripe account. Stores outside India connect their own Stripe account; customers pay by card, Apple Pay or Google Pay on Stripe's checkout page, and the money goes straight to your Stripe balance. Menuthere never holds it, so disputes and refunds are handled in your Stripe dashboard. See connect Stripe.
- Records to use as evidence. Each order shows a timeline (Placed, Accepted, Ready, Picked up, Delivered) with the time of each step, the items and bill, the customer's phone and address, the payment method, and on delivery orders the distance and the time from placed to delivered. The customer's order page shows each status as it changes, and with your own drivers, a live map. See delivery dispatch and order tracking.
- Fewer "not received" claims. A live order page and status updates mean customers know where their food is.
- Plan: online payments start on Lite (US$17 a month).
What it doesn't do: Menuthere doesn't respond to disputes for you, and it has no photo or signature proof of delivery. Your evidence is the order record, status times and your messages with the customer. For cash orders there are no chargebacks at all; see cash on delivery.
Take card payments on your own Stripe account, with the order records you need if a payment is ever disputed.
Related terms
- Payment processing fee: the fee on every card payment.
- Delivery dispatch: assigning a driver, part of your delivery record.
- Cash on delivery: payment at the door, with no card dispute.
FAQs
What is a chargeback in a restaurant?
A chargeback is when a customer's bank reverses a card payment to a restaurant after the customer disputes it, for example claiming the order never arrived. The restaurant loses the money and pays a dispute fee unless its evidence wins the case.
How much does a chargeback cost on Stripe?
In the US, Stripe charges $15 when you receive a dispute, and another $15 if you counter it. The countered fee is returned if you win; the received fee is not. You also lose the disputed amount unless the bank decides in your favor.
How long does a customer have to file a chargeback?
Card networks typically allow disputes within 120 days of the payment, and longer in some cases. Once a dispute is filed you usually have 7 to 21 days to respond, and the whole process can take 2 to 3 months.
What is the difference between a chargeback and a refund?
A refund is money you return to the customer yourself. A chargeback is the customer's bank taking the money back after a dispute, with a dispute fee to you and an effect on your dispute rate.
Who handles chargebacks for Menuthere orders?
You do, in your own Stripe account, because card payments outside India go straight to the restaurant's Stripe balance. Menuthere never holds the money, and the order record gives you the details to use as evidence.
Sources (5)
- Stripe Docs, How disputes work (Stripe debits the disputed amount plus a dispute fee; no refund outside the dispute while open; disputes typically within 120 days; respond usually 7–21 days; issuer decides usually 60–75 days; full lifecycle 2–3 months; received fee non-refundable outside Mexico; countered fee returned if you win; refunding early fraud warnings around the dispute fee): https://docs.stripe.com/disputes/how-disputes-work (accessed 20 Oct 2026)
- Stripe Support, June 2025 pricing updates for disputes (US: dispute received fee $15; dispute countered fee $15 for disputes initiated after June 17, 2025, returned if you win): https://support.stripe.com/questions/june-2025-pricing-updates-for-disputes (accessed 20 Oct 2026)
- Stripe Docs, Dispute reason code categories (credit not processed, duplicate, fraudulent, general, product not received, product unacceptable, subscription canceled, unrecognized; "product not received": show the product was delivered or a refund was issued): https://docs.stripe.com/disputes/categories (accessed 20 Oct 2026)
- Menuthere help: Connect Stripe (outside India), updated 18 Oct 2026 (own Stripe account; card, Apple Pay, Google Pay; money straight to your Stripe balance; Stripe's fees apply; Menuthere adds no fee): https://menuthere.com/docs/checkout-payments/connect-stripe-outside-india (accessed 20 Oct 2026)
- Menuthere help: Read an order, updated 12 Oct 2026 (status timeline with times; distance and time from placed to delivered on delivery orders): https://menuthere.com/docs/orders/read-an-order (accessed 20 Oct 2026)