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If a customer files a dispute while the package is in transit, they will automatically refund the customer, which will contribute to your losses and can Aid in customer fraud attempts. Additionally, they won't be able to resolve the issue for you, and you will still be charged the fee.
Hey there,
The service you're referring to is chargeback alerts. This notifies merchants of incoming chargebacks, and by default, enables an automatic refund to be processed to prevent the dispute.
Although it can reaffirm a refund that was already going to happen anyway due to the chargeback, many merchants are willing to accept this because it prevents the chargeback. This of course avoids any potential issues with your payment processor
If chargeback prevention is less important than maximum revenue retention, you can always opt to turn off chargeback alerts and utilize our automated chargeback recovery solution.