E-commerce Chargeback
Prevention & Solutions
Protect your online store from friendly fraud and win item not received disputes. Learn proven strategies to fight chargebacks, improve your tracking processes, and reduce dispute rates for your e-commerce business.
Generate E-commerce Dispute Response →The E-commerce Chargeback Crisis
of e-commerce chargebacks are friendly fraud (customer lying)
Average cost per dollar disputed (fees, time, lost goods)
of merchants who win chargebacks had strong tracking evidence
Why E-commerce Has High Chargeback Rates
- →Card-not-present transactions (higher fraud risk)
- →Shipping delays causing "item not received" claims
- →Customer remorse disguised as disputes
- →Easy for customers to lie about delivery
- →Package theft (porch piracy) blamed on merchants
- →Family members/roommates not recognizing purchases
Common E-commerce Chargeback Scenarios
"Item Not Received" (Most Common)
Customer claims package never arrived, even though tracking shows delivered.
How to Win:
- ✓Tracking showing "Delivered": Must show delivered to customer's address on date
- ✓Signature confirmation: Gold standard (especially for high-value items)
- ✓Delivery photo: Many carriers now provide photo proof of where package was left
- ✓Address verification: Show AVS (Address Verification System) matched at checkout
- ✓No prior contact: Customer never messaged about missing package before disputing
Friendly Fraud Red Flag: If tracking shows delivered and customer never contacted you about a missing package, this is likely friendly fraud. Emphasize they should have reached out first.
"Product Not as Described / Defective"
Customer claims item was different than listed or arrived damaged.
How to Win:
- ✓Detailed product listing: Screenshots of exact description/photos customer saw
- ✓Pre-shipment photos: Pictures of item before packing showing perfect condition
- ✓Return policy violation: Customer must offer to return item first per your policy
- ✓No damage claim to carrier: If shipping damage, customer should claim with carrier
- ✓Quality control documentation: Inspection checklist or photos before shipping
Key Defense: If customer kept the item and didn't offer to return it or provide damage photos, they're likely using dispute as free refund attempt. Highlight this bad faith behavior.
"Charged Twice / Duplicate Transaction"
Customer claims they were accidentally charged multiple times.
How to Win:
- ✓Separate order IDs: Show each charge corresponds to distinct order
- ✓Different timestamps: Orders placed at different times (not processing errors)
- ✓Multiple shipments: Tracking showing two separate packages sent
- ✓Order confirmation emails: Customer received separate confirmations for each order
- ✓No refund requested: Customer never contacted you to resolve "duplicate"
Common Scenario: Customer intentionally placed multiple orders (maybe while browsing), forgot, then disputes one. Your order history proving intentional separate purchases is key evidence.
"Unauthorized Purchase / Fraud"
Customer claims they didn't make the purchase or card was stolen.
How to Win:
- ✓AVS and CVV match: Address and security code verification passed
- ✓Shipped to billing address: Package sent to cardholder's address on file
- ✓IP address geolocation: Order placed from customer's region/ISP
- ✓Account history: Previous successful orders from same customer account
- ✓Email/phone contact: Customer communicated about order after purchase
Family Fraud Alert: Often "unauthorized" claims are from family members using card without permission. If shipped to cardholder's home address, this strengthens your case that it was household member, not stolen card.
E-commerce Chargeback Evidence Checklist
📦 Shipping & Delivery Evidence
- ☐Tracking number with delivered status
- ☐Full tracking history (origin to delivery)
- ☐Delivery address matching order
- ☐Signature confirmation (if required)
- ☐Delivery photo from carrier
- ☐Shipping label and receipt
- ☐Package weight/dimensions
🛒 Order & Transaction Evidence
- ☐Order confirmation email (with timestamp)
- ☐Shipping confirmation email
- ☐Order receipt/invoice
- ☐IP address and geolocation
- ☐Device fingerprint
- ☐AVS (Address Verification) results
- ☐CVV verification results
📸 Product & Listing Evidence
- ☐Product listing screenshot (what customer saw)
- ☐Product photos from listing
- ☐Pre-shipment photos of actual item
- ☐Packing photos showing condition
- ☐SKU/serial number documentation
- ☐Quality control checklist
- ☐Detailed product description text
💬 Communication Evidence
- ☐Customer service conversation history
- ☐Customer messages about order
- ☐Positive reviews or feedback
- ☐Terms of service customer agreed to
- ☐Return/refund policy
- ☐Proof customer didn't contact you first
- ☐Previous order history (repeat customer)
E-commerce Chargeback Prevention Strategies
1. Always Use Trackable Shipping
Use carriers that provide tracking and delivery confirmation (USPS, UPS, FedEx, DHL). Even for low-value items, tracking costs less than losing a chargeback. For items over $250, require signature confirmation.
2. Require AVS and CVV Verification
Enable Address Verification System (AVS) and require CVV codes at checkout. Decline transactions that don't pass both checks. This significantly reduces fraud and strengthens your defense in disputes.
3. Take Pre-Shipment Photos
Photo document every item before packing (especially for high-value or custom items). Include photos of: the item itself, the item with a packing slip, the packaged box, and the shipping label. Store these with order records.
4. Use Clear Billing Descriptors
Make sure your business name on customer credit card statements matches your store name. Include your website URL or customer service number. Confusing descriptors lead to "I don't recognize this charge" disputes.
5. Proactive Customer Communication
Send order confirmation, shipping notification, and delivery confirmation emails. Include tracking links and delivery dates. Ask for feedback after delivery. Engaged customers are less likely to dispute charges.
6. Implement Fraud Detection Tools
Use fraud prevention services (Stripe Radar, Signifyd, Kount). Block high-risk orders: mismatched billing/shipping addresses, rapid purchases, unusual IP locations, disposable emails, or multiple failed payment attempts.
7. Detailed Product Descriptions & Photos
Use multiple high-quality photos from different angles. Include detailed dimensions, materials, colors, and condition. Set accurate expectations to prevent "not as described" disputes. More detail = fewer surprises = fewer chargebacks.
8. Clear Return & Refund Policy
Display your return policy prominently on product pages and at checkout. Make it easy to find and understand. A fair return policy encourages customers to contact you instead of disputing charges. Legitimate returns are better than chargebacks.
Generate Winning E-commerce Dispute Responses
Turn your tracking numbers, shipping records, and order documentation into professional evidence packages that win chargebacks and protect your bottom line.
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