Amazon Chargebacks

What You Need to Know about Amazon Chargebacks

With Amazon the leading retailer online, there is no mystery why vendors and customers alike flock to this ecommerce giant. With the huge numbers of transactions on the site daily, it’s not surprising that vendors often receive chargeback alerts.

Amazon, like payment platforms and other ecommerce sites, has a process for dealing with chargebacks and fighting chargeback fraud.

Vendors see Amazon chargebacks as a major problem, and are likely to contest any chargeback requests. That’s why it’s important to use proven resources and work with Crypto Recovery Squad experts to boost your claim and improve the likelihood for Amazon chargeback success.

What Is an Amazon Chargeback?

An Amazon chargeback works similarly to credit card chargebacks and other types of fund recovery. A customer makes a claim about an order and demands their money back. In the case of an Amazon chargeback, they want to have the transaction reversed and to ensure the money is returned to their credit card.

The most common reasons a vendor receives a chargeback alert on Amazon.com are:

  • Item never arrives
  • Item is damaged
  • Item is not in accordance with the order
  • Unauthorized charges on Amazon card or account

The customer will make a complaint and provide evidence backing up their grievance. When the vendor receives an Amazon chargeback email, they have 11 days to respond. Amazon will decide which side has the stronger case and they will either demand the vendor pay back the customer, along with an Amazon chargeback fee.

In some cases, though, Amazon will side with the vendor and will regard the customer’s claim as flimsy. That is why it’s important to have all of the evidence on your side when making an Amazon chargeback claim.

What is the Amazon Chargeback Process?

The following are the steps in the Amazon Chargeback process:

  • Customer files complaint and gives documentation supporting it
  • The vendor receives an Amazon chargeback email
  • The vendor has 11 days to respond to complaint
  • Amazon decides whether to allow the vendor to keep the money or to issue an Amazon chargeback to the customer

This process is designed to happen quickly. The vendor has only 11 days to respond. This can be a pro and a con for both parties. For the customer, it means the merchant will have a smaller window to try to disprove the customer’s complaint. However, it means a customer has to act fast to shore up their case and come up with evidence to support their claim.

Keep in mind that it’s in Amazon’s interest to keep both customers and vendors happy. The e-commerce site doesn’t want to lose vendors any more than it wants to disappoint customers.

Vendors have to return money to a customer if the latter wins the Amazon chargeback claim and have to pay a fee This could upset vendors and cause them to find other alternatives to Amazon. However, if Amazon earns a reputation for not honoring customer complaints, customers will stop using their services.

It’s not useful to assume Amazon is biased in any particular way. They want to combat chargeback fraud committed by customers and protect vendors from trivial or inaccurate complaints. At the same time, they want to offer fair Amazon chargebacks to customers who have valid claims against fraudulent merchants or vendor mistakes.

Why a Vendor Is Likely to Fight Your Amazon Chargeback

Although Amazon chargebacks benefit those who have lost money to fraudulent merchants and hackers, they are a bane to vendors.

No merchant wants to end up on the Amazon vendor chargeback list. They are concerned about chargeback fraud, or so-called “friendly fraud,” in which customers try to get items for free by making a chargeback claim and yet not returning the item.

Since chargeback fraud is a growing problem, it’s unlikely that a vendor will let your chargeback claim go uncontested. As Amazon chargebacks threaten to eat away at a vendor’s margins, they will likely fight back to avoid returning money to customers and paying chargeback fees.