A merchandise dispute is a claim that's filed because there was a problem with physical goods¹ purchased. Common issues include:

• Item delivered, not received, or damaged. 
• Incorrect amount was charged.
• Incorrect item was received.
• Quality of the item is questionable.

A service dispute is a claim that's filed because there was a problem with a particular service² a customer is trying to use. Examples include:

• Poor condition of your hotel room that caused you not to stay.
• Subscription charges that were previously cancelled.
• Event tickets were purchased online, but they were not honored.
• Quality of repair work is questionable.


Why it matters


Financial institutions often have different timeframes and documentation requirements for merchandise and service disputes. For example, merchandise disputes may depend on shipping and delivery dates, while service disputes may depend on terms of the agreement and communication.

¹Physical goods include, but aren't limited to, electronics, clothing, furniture, books, supplies, etc.

²Services include, but aren't limited to, renting a hotel room, streaming services, event tickets, repair work, etc.