This guide will explain what a chargeback is and provide best practices for chargebacks. However, chargebacks will be handled between you and your payment processor as no monies pass through Cratejoy.

What is a chargeback?

A chargeback is when funds are returned to a credit card owner after they report an incorrect or unwanted transaction on their card to the credit card company.

Why would a chargeback be filed?

  • Fraud - This is when the credit card owner reports that they did not make or authorize a transaction. This may happen when a credit card number is used without permission.
  • Non-Delivery - This is when a buyer makes a purchase—and that purchase goes through—but the buyer never receives the item or items purchased.
  • Not as Described - In this case, a purchase is made, but the buyer receives an item(s) that is different than what was listed, or different from what the buyer thought they were purchasing.
  • Return - A credit card owner can request a chargeback if they’re not satisfied with the item(s) purchased and received. This could be for a variety of reasons, including damage.
  • Dissatisfied - A chargeback can be filed if the buyer is not satisfied with their purchase.

How does a chargeback get filed against me as a seller?

A credit card owner, who may or— in some cases—may not be the buyer, contacts their credit card company and requests a refund for the transaction. The reasoning for the refund could be one or many of the types listed above.

Merchant best practices for chargebacks