What They Are & How to Protect Your Business
The holiday season brings more sales — but it also brings more chargebacks. With increased shopping, online orders, fraud attempts, and shipping delays, disputes tend to spike this time of year. Here’s what every business should know:
What Is a Chargeback?
A chargeback happens when a customer disputes a transaction with their bank. The bank pulls the funds back while they investigate, often before you’re aware of the issue.
Why Chargebacks Increase During the Holidays:
- More online and card-not-present transactions
- Gift purchases customers don’t recognize
- Shipping delays
- Higher fraud activity
- “Friendly fraud” — disputing legitimate purchases
How to Protect Your Business:
- Use AVS and CVV for card-not-present sales
- Keep clear business names on statements
- Provide tracking and delivery confirmation
- Document receipts, invoices, and service records
- Make refund/return policies clear
- Train staff to watch for red flags
If a Chargeback Happens:
Respond quickly with strong documentation — delivery proof, signed work orders, receipts, or communication logs. A fast, organized response increases your chance of winning the dispute.
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