Amazon Chargebacks (What Are They, How To Deal With Them, Getting Banned + More)

When someone begins to sell on Amazon, they have to be prepared to deal with a number of issues. Problems with shipping, disgruntled customers and charge errors are all common issues for sellers.

However, some sellers may be concerned about how to handle a chargeback from a customer. If you’re wondering what they are and how to deal with them, keep reading through this article to learn more about this topic!

What Are Amazon Chargebacks In 2021?

Chargebacks will show up on an Amazon Seller account when a customer contacts their bank or credit card company to challenge a charge made to their account after placing an order from a seller’s page. This may be due to a customer not recognizing the charge, not receiving the product they ordered or something similar.

If you’d like to learn more about how to deal with a chargeback on Amazon, how long you have to respond to a chargeback and more, keep reading for more useful facts, tips and information!

How Do I Deal With Amazon Chargebacks?

When a seller on Amazon receives a chargeback on their account, they must first review the notification to gather the necessary information provided by the customer.

For example, if a customer claims their package has yet to arrive, sellers should review their tracking number to determine whether or not the package was properly delivered.

After reviewing the information, sellers must decide whether or not to accept the chargeback and refund the customer’s money. If the customer is in the right, sellers should approve the chargeback.

However, if a seller finds the customer to be in the wrong, they have the option to dispute the chargeback by following the instructions in the email they were sent.

Does Amazon Ban Sellers for Chargebacks?

According to Amazon’s policy regarding chargebacks, merchants will not be held responsible for a chargeback if they followed through on all the necessary steps throughout the initial product transaction.

However, if sellers are found to be guilty of a false transaction, or they did not follow proper protocol when fulfilling an order, Amazon may ban the seller from using Amazon as a platform.

Therefore, if a seller on Amazon has made a mistake during their fulfillment process and receives a chargeback, it’s recommended that they accept the chargeback instead of disputing it.

How Do I Respond to a Chargeback Claim on Amazon?

How Do I Respond to a Chargeback Claim on Amazon?

When a seller receives a chargeback notification on their account, they can respond either by disputing the charge or accepting it and refunding their customer’s money.

To dispute the charge, sellers must respond to the email sent to their account and provide information supporting their case. They must include the following:

  • The status of the transaction
  • A description of the product or service
  • Proof that the product was received by the customer

Additionally, while these details are not required, Amazon recommends including the following information:

  • Order confirmation details
  • A record of any changes, refunds or cancellations on the order placed
  • Tracking numbers for the order
  • Logs for purchases that were digital downloads
  • Photos of the product ordered
  • A description of the item
  • A copy of the seller’s refund and return policy for their brand
  • A record of communication between the seller and the customer

However, if sellers choose to accept the chargeback request, they must notify Amazon by confirming their consent to the amount requested as a refund.

However, sellers should note that they only have 11 days to respond to a chargeback request. If sellers do not respond within that time, they will be automatically charged.

Do I Have to Pay to Dispute a Chargeback on Amazon?

If sellers choose to dispute a charge on their account, they will have to pay $20 per chargeback for representation from Amazon Pay.

However, if sellers provide the correct information, and it’s confirmed that the customer’s issue falls under Amazon’s Payment Protection Policy, sellers will not be charged the dispute fee.

Otherwise, if the correct information is not supplied and sellers request representation, they will be charged the dispute fee regardless of the outcome in their case.

How Long Do I Have to Respond to an Amazon Chargeback?

When sellers receive a chargeback notification on their account, they have up to 11 days to either accept the chargeback fee or to dispute the charges.

If a seller does not reply to a chargeback notification, though, they will be automatically charged and held responsible for the customer chargeback request once 11 days have passed.

What Does an Amazon Chargeback Notification Look Like?

When sellers receive a chargeback notification, the email will contain the following information:

  • Seller order ID
  • Order reference ID
  • Date of the transaction
  • The disputed amount
  • Card type
  • Type of dispute (unauthorized transaction chargeback or service chargeback)
  • Dispute reason code

In addition to these basic details, the email will also include the details the seller must provide to either dispute or approve the charges.

To find out more, you can also see our posts on which credit bureau does Amazon uses, if you can split payments on Amazon, and if Amazon accepts Unionpay.

Conclusion

When an Amazon seller receives a chargeback in their account, the customer may be disputing a package that didn’t arrive, was defective, or an unauthorized charge made to their account. Sellers can choose to either accept the charges or dispute them.

If sellers decide to dispute the charges, they must provide Amazon will the information about the order, in order to prove they followed fulfillment instructions and to prove that they either sent the package, sent a working item or did not charge a customer.

marques thomas query sprout

About the author

Marques Thomas graduated with an MBA in 2011. Since then, Marques has worked in the retail and consumer service industry as a manager, advisor, and marketer. Marques is also the head writer and founder of QuerySprout.com.

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