The disputed amount is pulled back from the agency while the creator's bank decides. Melon notifies both parties when a dispute opens and again when it closes, and the balance is restored to whichever side the outcome favours.
What a dispute is
A creator asking their bank to reverse a Melon charge. The bank, not Melon, decides the outcome, and that process can take weeks.
What happens immediately
The disputed amount is deducted from the agency's balance.
Both the agency and the creator are notified that a dispute was opened.
If the agency's balance cannot cover it, the shortfall is carried and recovered from later payouts.
When it resolves
Resolved in the agency's favour — the amount is returned to the agency balance and both parties are notified.
Resolved in the creator's favour — the reversal stands. The split balance reflects that the money was not collected, so it remains owed under the split agreement even though this particular charge was reversed.
ACH returns are not disputes
An ACH payment returned as unauthorised (codes R10 and R11) arrives as a failed payment, not a dispute. It looks similar from the outside but follows the insufficient-funds path instead. See What happens if a creator does not have enough money?.
Avoiding disputes
Most disputes are recognition problems, not disagreements. Charges appear as "Melon paid your team!" on a statement — a creator who does not know that may not recognise it. Telling creators what to expect, and when, prevents most of them.
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