# Dispute States

In this guide, you can learn about the disputes, protested charges, and the chargeback lifecycle.

Whether you're managing disputes through the dashboard or API, the `response_state` and state of the Dispute details what steps to take to move the Dispute forward.

## Dispute Responses States

| `response_state`         | Description                                                                                                                            |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| `NEEDS_RESPONSE`         | The `Merchant` needs to respond to the `Dispute` by `Dispute#respond_by`.                                                            |
| `RESPONDED`             | The issuing bank has received the evidence and actively reviewing it. No action needed from the `Merchant`.                            |
| `ACCEPTED`              | The `Merchant` has accepted the `Dispute`. When a `Dispute` is accepted, you concede that the dispute is not worth challenging or representing. For details on how to accept a `Dispute`, see [Accepting a Dispute](https://docs.finix.com/guides/after-the-payment/disputes/accepting-disputes/). |
| `NO_RESPONSE_ALLOWED`    | The final `Dispute#response_state` when a `Dispute` is either `WON` or `LOST`.                                                        |
| `UNKNOWN`               | `Dispute` details couldn't be submitted to the processor. Comes up when testing `Disputes` in sandbox or on the `DUMMY_V1` processor. |

## Dispute States

| `state`                 | Description                                                                                                                            |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| `INQUIRY`              | The `Dispute` is being reviewed by the buyer's issuing bank. When `Dispute#state` is `INQUIRY` no changes can be made.                 |
| `PENDING`              | This `Dispute#state` change will happen at a later time, after the `Dispute` accept request is submitted. For a dispute on a sale when accepted the `Dispute#state` changes to `LOST`. For a dispute on a refund when accepted the `Dispute#state` changes to `WON`. We recommend subscribing to our [webhooks](https://docs.finix.com/additional-resources/developers/webhooks), and listening for the [`Dispute` `updated` event](https://docs.finix.com/additional-resources/developers/webhooks/webhook-events#dispute-updated). |
| `LOST`                 | The `Dispute` is lost and no further changes can be made.                                                                             |
| `WON`                  | The `Dispute` is won and no further changes can be made.                                                                              |

## Dispute Reasons

The `reason` of the `Dispute` provides additional details regarding why the dispute got filed.

| `reason`                | Description                                                                                                                            |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------|
| `CLERICAL`             | An error occurred while processing the sale, or the cardholder has an issue with the transaction and refuses the goods.                 |
| `FRAUD`                | The cardholder claims they didn't approve or authorize the transaction. `FRAUD` is the primary reason disputes get created.              |
| `INQUIRY`              | The `Merchant` didn't respond by the `respond_by` date, or the transaction got flagged for review due to the network's internal standards. |
| `QUALITY`              | The cardholder has issues with the quality of the goods or services received. Reasons can include receiving damaged goods or a service that doesn't match what's promised. |
| `TECHNICAL`            | A technical issue caused the transaction to process funds incorrectly.                                                                  |

`Disputes` get created with a `PENDING` `state`. `Dispute#state` updates with the decision of the issuing bank. The bank's decision is final for all parties. You can’t overturn a lost dispute, and your customer can’t overturn a dispute decided in your favor.

If the `Dispute#state` gets updated to `INQUIRY` or `PENDING` than the issuing bank is requesting additional information, from the seller, showing the transaction was legitimate. For steps on how to upload evidence and respond to the issuing bank, see [Responding to Disputes](https://docs.finix.com/guides/after-the-payment/disputes/responding-to-disputes).