Chargebacks quick general questions
Hi all,
Have been doing FBA for the past several months. Read lots posts here on the forum. People discuss the good, bad and ugly of selling on Amazon. Only recently I realised that there is one Good definitely is good: about chargeback claims. Here are my points to double check that my understanding is correct.
1, For FBA, there will never be any chargeback against you.
2, For FBM, chargeback only bites you for delivery related issues; things like stolen card etc. Amazon would ask you to provide some information but you never lose money.
If above is accurate and correct, then certainly something to praise Amazon for. (Not sure about ebay policy, but Shopify won’t cover you.)
p.s. If you also do other channel selling, what do you do to protect yourself against chargeback? Any good or bad experiences to share?
Have a nice selling day,
9 replies
Seller_hC0hNVDuILaKO
You are correct about the chargebacks [certainly on FBM]
All chargebacks related to the payment will be covered by Amazon since you as the 3PS do not have any access to, or dealings with the payment aspect of orders.
Asyou say chargebacks related to the product itself however may bee the sellers responsibility.
Not sure how FBA is affected by that rule though.
Seller_EJIX7rqDNQJi2
Credit card chargebacks can be received on both FBA and FBM orders and in the majority of cases they are closed without any input from you and with no damage to your metrics.
Basically, you are right that it’s one of the few protections which Amazon offers to sellers to have chargebacks filled under “Unauthorized transaction” reason covered by them.
Other marketplaces will hold the seller responsible for all chargebacks, regardless of the reason.
Regarding protecting yourself, there isn’t much you can do as the claims are processed by each buyer’s financial institution which is very likely to always decide them in their client’s favor.
My own experience outside of Amazon was only negative - all chargebacks on PayPal debited out of my account and the buyers weren’t even required to send the items back.
Seller_MJqmJsOcfYSMK
Thanks all. Regarding protection, are we really like dead chicken that nothing we can do? Google searching “Chargeback guarantee” seems lots of “solutions” from different angles. e.g. ravelin etc.?
Seller_qZO3ZCjoBXEeL
As @Kika mentioned chargeback protection is typically only against fraudulent use of the card.
You are still at risk of chargeback on complaint that the product is not fit for sale, faulty etc. In the case of FBA however this usually never happens because Amazon will usually automatically refund the customer anyway.
Seller_1qKTBDbgtHefM
On Amazon you are not responsible for chargebacks in any situation.
Chargebacks are between the Card Provider and the financial institution that received payment, which obviously here is Amazon.
Amazon could ask for assistance and information, but you are not repsonsible for the chargeback.
This is one of those situations where the law is actually usable against amazon to protect yourself against this blatant attempt to get money from sellers for things Amazon are responsible for.
Just respond to any claims with “Chargebacks are between the card issuer and the institution that received the payment, we are neither and so have no responsibility in this situation.”.
It’s just another Amazon method of getting suppliers to pay for things and save themselves some pennies. If even ONE supplier pays off a chargeback, Amazon saved some money. Now imagine how many people do it simply out of fear…
Every single one of these has the response as above.
