Amazon does not execute chargebacks. The bank—or whoever else gave the buyer their card—does it in its place. These guys are known as the “card issuer.”
An Amazon chargeback happens when a buyer chooses to go through the card issuer (not Amazon) to get their money back. Many customers will attempt asking you or Amazon for a refund first, but some go straight to their banks.
The card issuer determines whether the customer gets their money or not. They may take it from Amazon or from you, but anyway, they take away your authority to decide whether you have to offer a refund.
Chargebacks are a pretty dreadful deal all around. They can take months to resolve, and if Amazon or the bank decides you’re to blame, you’ll have to pay a heavy fee.
What’s the Amazon Chargeback Fee?
When it comes to the fees for a chargeback, Amazon doesn’t provide almost as much protection as the Paypal/eBay chargeback system. The Amazon Service Business Solutions agreement declares that you have to cover all fees the card issuer charges if you lose.
What about Amazon Fraud Protection?
Amazon fraud protection can save you in a few situations. If it’s determined that someone stole the customer’s payment card details to make the purchase, then Amazon might take up the fees.
I say “might” because Amazon’s still going to inquire for a lot of info from you. If you can’t give them things like proof of delivery (if you offer your own shipping), then you will lose their security and pay the fees anyway.
What Info Do I require to Qualify for Amazon Fraud Protection?
According to the Amazon Services Business Solutions Agreement, you require the following to qualify for Amazon fraud protection:
- Evidence that you made the delivery (if you aren’t using Fulfillment by Amazon).
- The order detection number.
- An illustration of the item sold.
- The terms of the sale as shown on Amazon when the customer made the purchase, whether those were Amazon default terms or your own terms.
If you can’t give that info, you won’t qualify for security.
What Chargeback Does That Protect Against?
The only type of fraud that Amazon secures sellers from is third-party fraud. That is, fraud caused by someone stealing a card and using it without the owner’s authorization.
Unluckily, it doesn’t secure you against “friendly fraud”: chargebacks from customers who meant to purchase the item and abuse the chargeback system to get if for free.
Does Amazon Protect against Any Other Chargebacks?
If a chargeback arises because Amazon made a fault providing order information, and you’re able to give all the applicable info mentioned above, then Amazon won’t need you to cover the cost of the chargeback.
What Do I Have to Pay If I Lose a Chargeback Claim?
If Amazon fraud security policy doesn’t cover you and the card issuer chooses to go through with the chargeback, it can cost a lot of money. This may include:
- The purchase price.
- Shipping and handling fees.
- Payment processing fees.
- Bank or credit card association fees.
- Any fees for Amazon representing you to the card issuer.
- Any other fees or penalties involved.
How Can I get ready for Future Amazon Chargeback Claims?
- Keep watchful track of all shipping.
- Use tracking numbers on each package you ship.
- Keep records of discussions with customers.
- Need signature confirmation for luxurious items.
- Keep money on hand to pay for misplaced chargeback claims.
Each Amazon chargeback sent your way will harm your business. Manage Amazon Account like a pro so customers don’t have a cause to file chargeback in the first place, and keep careful records of every sale and delivery so you can fight the ones they do file efficiently. Everyone loses to the infrequent chargeback claim, but you can avoid most and face the rest standing tall. Call us now +1 844 444 4171 (Toll-Free) for a free consulting.