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uk Money & financial emergencies payment placed on hold • funds on hold • payment dispute • sender says unauthorised • sender claims unauthorised • unauthorised payment claim • buyer dispute • chargeback started • payment reversed risk • payment processor hold • paypal payment on hold • card payment dispute • merchant dispute response • proof of delivery needed • digital service delivery proof • scam suspected payment • stolen card payment risk • dispute resolution centre • account limited or review • unexpected dispute notice

What to do if…
a payment you received is placed on hold because the sender claims it was unauthorised

Short answer

Treat the money as not yours yet: stop spending it, pause any fulfilment you still can, and respond only inside the payment provider’s official dispute/chargeback process with evidence of what you delivered.

Do not do these things

  • Don’t refund or “send it back” using a separate transfer, a different app, gift cards, crypto, or “Friends & Family” style payments.
  • Don’t click links in emails/texts about the dispute—log in by typing the provider’s address yourself.
  • Don’t ship/hand over goods, share download links, or provide access while the payment is on hold (or if you can still stop fulfilment).
  • Don’t accept “I’ll cancel the dispute if you…” deals off-platform.
  • Don’t delete messages, invoices, tracking, screenshots, or logs that show what was agreed and delivered.
  • Don’t assume it’s a simple misunderstanding—“unauthorised” claims can indicate an account takeover or a stolen card.

What to do now

  1. Freeze the transaction on your side.
    Treat the amount as unavailable until the hold/dispute is closed. Avoid spending it or moving it around as if it’s settled.

  2. Stop fulfilment if you still can.

    • Physical goods: pause shipping; if it’s already shipped, don’t reroute to a different address.
    • Digital/services: pause new work, new access, or extra deliverables (but don’t destroy existing proof).

  3. Log in safely and read the exact reason and the response deadline.
    In the provider/app/marketplace, open the dispute/claim details and note:

    • the dispute type (e.g., “unauthorised transaction” vs “item not received”)
    • what evidence they request
    • the deadline to respond (missing it can sink your case)

  4. Submit the strongest evidence you have (only through the official portal).
    Useful evidence often includes:

    • proof of shipment/delivery (tracking, delivery confirmation, signature if available)
    • the address you shipped to and how it matches the order/payment record
    • order/invoice details and item description
    • message history showing the buyer requested/approved the purchase
    • for digital goods/services: timestamps and logs showing delivery/access (download records, access logs, email delivery receipts, handover messages)

  5. If you took a card payment via a processor, use their “chargeback / dispute response” route.
    Many “unauthorised” claims are handled as chargebacks by the buyer’s bank. Your practical task is still the same: respond by the deadline with proof of fulfilment and that you shipped/provided to the recorded details.

  6. Keep communication inside the platform and keep it short.
    If you message the sender, stick to: “Please use the platform’s dispute process. I’ve submitted fulfilment evidence there.”
    Don’t argue, threaten, or share extra personal data.

  7. Secure your accounts immediately.
    Holds can coincide with account compromise attempts.

    • Change your password (unique, long) and enable 2-step verification if available.
    • Check for new logins/devices and any changed payout/bank details.
    • If you reused the password anywhere else (especially email), change it there too.

  8. If anything feels like fraud, report it through the right UK route.

    • England, Wales, Northern Ireland: report cyber crime/fraud via the national reporting service (Report Fraud).
    • Scotland: report fraud to Police Scotland via 101 (999 if there is immediate danger).
      Also report suspicious messages inside the platform so they can investigate.

  9. If the provider’s decision seems wrong, use complaints escalation.
    Complain to the payment provider/bank first using their complaints process. If you’re not resolved after their final response (or typically within 8 weeks for many complaints, where applicable), and the firm is covered, you may be able to take it to the Financial Ombudsman Service.

What can wait

  • Deciding whether to pursue the sender directly for money (civil action) — wait until the dispute outcome is known.
  • Writing a long “case history” — focus on the specific evidence the provider asks for.
  • Negotiating compromises with the sender — you can revisit after the dispute, in writing, and only if it’s clearly safe.

Important reassurance

This is a common situation, and it doesn’t automatically mean you’ve done something wrong. A hold is often a safety pause while the provider checks whether the payment was genuinely authorised. Your job right now is to avoid irreversible moves and supply clear, relevant proof through the official process.

Scope note

These are first steps to stabilise and reduce loss. If the amount is large, you run a business, or you’re seeing repeated disputes, you may need specialist help later (for example, your provider’s merchant support or a qualified adviser).

Important note

This guide is general information, not legal or financial advice. Dispute rules and timelines vary by payment method and provider, and outcomes depend on the specific evidence available.

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