In the inquiry lifecycle, when the inquiry is closed with funds remaining with the merchant, what does this indicate?

In the inquiry lifecycle, when the inquiry is closed with funds remaining with the merchant, what does this indicate?

• A. The dispute was resolved in favor of the cardholder
• B. The dispute was escalated to a higher authority
• C. The inquiry is closed with funds remaining with the merchant
• D. The dispute automatically converts to a chargeback

Answer: (C)

In this part of the dispute process, money being held during investigation can be returned or released depending on the outcome. When the inquiry is closed and funds remain with the merchant, it means the dispute did not overturn the merchant’s position—the decision favored the merchant, so the funds stay with them and no refund goes to the cardholder. This is different from a resolution that refunds the cardholder, or from escalating the dispute or converting it into a chargeback, which would involve taking funds back from the merchant.

In this part of the dispute process, money being held during investigation can be returned or released depending on the outcome. When the inquiry is closed and funds remain with the merchant, it means the dispute did not overturn the merchant’s position—the decision favored the merchant, so the funds stay with them and no refund goes to the cardholder. This is different from a resolution that refunds the cardholder, or from escalating the dispute or converting it into a chargeback, which would involve taking funds back from the merchant.