What are 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.

Charges can be disputed for a variety of reasons:

  • Orders that were never delivered
  • Merchandise that arrives damaged or defective
  • Orders that do not reflect what was purchased
  • Incorrect charges (additional charges or incorrect totals)
  • Fraud / unauthorized charges (including compromised card info)


How can I avoid chargebacks?

  1. Check the customer’s credit card upon pickup and delivery; ensuring that the last 4 digits match. Buddi can add a disclaimer message at your checkout page to notify customers about this policy if you'd like. This can also be communicated in your SMS/email notifications to customers or other areas of your website.
  2. Verify that the correct customer is picking up the order by checking their ID.
  3. Repeat the order list to the customer and get him/her to double-check the product(s) before handing them off.
  4. Get the customer to sign the receipt (verify that it matches the signature on their ID or back of the credit card).
  5. Ensure that the name of your store and/or domain are what appears on your customer's statements so that they don’t mistake you for a fraudulent charge.
  6. Consider implementing these 3 high security features in your payment processor account:
    1)  AVS Check
    2)  3D Secure
    Hosted Checkout

Will AVS Check or 3D Secure protect me from chargebacks?

No, AVS Check and 3D Secure are not guaranteed ways to avoid chargebacks, although the disputes will less likely be fraud and likely to be the customer initiating the chargeback process.