Introduction to Chargebacks

A chargeback is a charge that is returned to a payment card after a customer successfully disputes an item on their account statement or transactions report. A chargeback may occur on debit cards (and the underlying bank account) or on credit cards. Chargebacks are not unique to selling on Amazon, and they are regulated by the government. In the U.S. chargeback reversals for debit cards are governed by Regulation E of the Electronic Fund Transfer Act. Chargeback reversal for credit cards is governed by Regulation Z of the Truth in Lending Act.

The Agreement

The Amazon Services Business Solutions Agreement (the “Agreement”) outlines chargeback responsibilities in relation to third party sales on Amazon. Below is an outline of those responsibilities.

• Sellers are responsible for chargebacks filed against their selling accounts for service-related reasons, such as non-receipt of the product, quality complaints, etc.
• Amazon is responsible for any payment-related fraud chargebacks, such as stolen credit cards or other payment fraud attempts.

Forum Discussions

Community Managers are aware there are forums discussions held over the fairness of chargebacks. Some sellers believe that Amazon should absorb the cost of the chargeback. Or, they express concern that Amazon failed to defend the chargeback. When a buyer initiates a chargeback with their financial institution, Amazon receives contact and in turn will contact you via email to request transaction information.

Be Prepared to Provide Transaction Information

To prevent chargeback claims, the best practices for sellers are:

• Use the shipping address provided to you by Amazon. You are liable for any disputes filed for orders you send to a different shipping address.
• Use a shipping method with a valid tracking number.
• Use delivery confirmation (signature required) for high value merchandise.
• Keep a record of the date the order was shipped, the shipping method used, and any available tracking information for at least 6 months after the order date.

See the help page I have linked below for more detailed information, instructions, and timelines.

• Respond to a chargeback claim

Thank you for taking the time to read this information. I hope it helps.

Susan