Abstract: A system for fraud dispute of pending transactions. The system comprising receiving data corresponding to a pending transaction between the user and a merchant; and analyzing the transaction data to determine whether the transaction data comprises at least one indicator of a fraudulent transaction. Wherein, pausing an initiation to provide funds for the pending transaction, providing the user at least one questionnaire relating to the received transaction data or a set of stored user data, receiving a response from the user for the questionnaire, comparing the received response to the received transaction data or the stored user data, determining whether to validate the user based on the comparison, rejecting the pending transaction when the user is not validated, and removing the indicator when the user is validated. Wherein, approving the pending transaction, and initiating a request to provide funds to the merchant. And storing the received transaction data and analysis.