Chargeback: 5 FAQs answered for e-commerce businesses
Lucas Ferraz · 2026-10-07
WHAT IS A CHARGEBACK AND HOW DOES IT WORK?
A chargeback is the reversal of a financial transaction, where the customer asks their bank or card issuer to refund the amount paid. This mainly happens in cases of fraud, unrecognized purchases, or products that weren’t delivered. When a customer files a chargeback, the bank investigates the claim and, if it approves it, refunds the customer, while the seller bears the costs, including administrative fees.
WHAT ARE THE CUSTOMER’S RIGHTS IN THIS PROCESS?
Customers have the right to dispute a charge they believe is incorrect. This includes:
- Products that weren’t delivered or are defective
- Unrecognized transactions
- Duplicate charges
In addition, banks have specific timeframes for reviewing requests, and customers must be informed about the status of their claim.
HOW CAN YOU PREVENT CHARGEBACKS IN YOUR STORE?
To reduce the risk of chargebacks, put these practices in place:
- Transparent information: Provide clear product descriptions and delivery policies.
- Order confirmation: Send confirmation emails with purchase details.
- Efficient customer support: Provide contact channels to resolve issues quickly.
- Fraud monitoring: Use anti-fraud tools to identify suspicious transactions.
- Clear return policies: Make the return process easy to avoid customer dissatisfaction.
WHAT DOCUMENTS DO YOU NEED TO DISPUTE A CHARGEBACK?
If you face a chargeback, it’s essential to gather the right documentation to dispute it. Key documents include:
- Proof of delivery (tracking)
- Communications with the customer (emails, messages)
- Order records (invoices, receipts)
- Proof of transaction authorization
These documents help show that the transaction was legitimate and that the product was delivered correctly.
WHAT CAN HAPPEN TO A SELLER’S ACCOUNT AFTER TOO MANY CHARGEBACKS?
A high chargeback rate can have serious consequences for the seller, such as:
- Additional fees: Some payment processors impose financial penalties.
- Account suspension: The seller’s account may be suspended or even banned.
- Difficulty processing payments: A negative history can affect the acceptance of future payments.
To avoid this, it’s important to monitor your chargeback rate and act quickly to reduce risks.
How have you been managing chargebacks in your store? Share your numbers!