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 many reasons. A cardholder may have been charged by a merchant for items they never received, a merchant could have duplicated a charge by mistake, a technical issue may have caused a mistaken charge, or a cardholder’s card information may have been compromised.



How can I avoid chargebacks?

Our best recommendations for preventing chargebacks are as follows:

  1. Subscribe to 3D Secure through your payment provider and ensure that it is enabled on the Buddi platform.
  2. When delivering or having a customer come in to pick up an order check their credit card and ensure it matches the one used to place the order.
  3. Ensure the name of your store and domain are what appear on your customer's statements so that they don’t mistake you for a fraudulent charge.



Will AVS protect me from chargebacks?

No, AVS is not a guaranteed way to avoid chargebacks. While the address verification will help reduce fraud it’s not a guaranteed solution.