Handling chargebacks

A chargeback is a reversal of payment issued by the bank or credit card company when a customer disputes a charge through their bank or credit card issuer (and not through Amazon Pay). They’re also known as "charge disputes" and “reversals”. A chargeback can occur for a variety of reasons, including when a customer has not received the items they purchased, has been charged multiple times for a single purchase, is dissatisfied with the purchase or when there’s an unauthorised use of the credit card.

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Amazon Pay chargeback claims overview length: 2:45

A customer who can’t resolve their issue with the merchant typically contacts their bank or credit card issuer to request a chargeback. The bank or credit card issuer then notifies the credit card association, which in turn notifies Amazon Pay.

Chargeback details

Amazon Pay chargeback notification emails give you details about each chargeback with the following information:

• Merchant order ID
• Order reference ID
• Transaction date
• Disputed amount
• Card type
• Dispute type
• Dispute reason code

Chargeback Instant Payment Notification (IPN) messages include key elements of the above.

Note the dispute type, which tells you that the chargeback is one of the following:

• Unauthorised transaction chargeback is the result of an unauthorised charge and potentially eligible for the Amazon Pay Purchase Protection Policy, as described in the Customer Agreement.
• A service chargeback is filed by a customer, which means that you need to note the card type and dispute reason code so that you can determine which types of information to submit if you dispute the claim.

For explanations for the major credit card issuers’ dispute reason codes, see Cardholder Dispute Reason Code Encyclopedia.

Disputing a chargeback claim

When Amazon Pay receives a chargeback claim, we email information to you about the chargeback, including the order number and the amount of the chargeback claim. You have the option of accepting the chargeback or of requesting assistance from Amazon Pay in disputing the chargeback claim.

If you ask for assistance from Amazon Pay in handling the dispute, we assess a fee of £14 and require you to provide us with information that we need to dispute the claim. When we have received the information from you, we work with the bank or credit card company to resolve the chargeback.

If you choose not to request assistance from Amazon Pay to resolve the dispute, the dispute is automatically granted to the customer, and Amazon Pay deducts the disputed amount from your account.

Chargeback best practices

Consider taking the following steps which might help prevent disputes:

• Review and comply with the information in the Acceptable Use Policy.
• Describe your products and services in as much detail as possible.
• Make return and refund policies easily accessible to all customers on your website, particularly during the purchase and checkout process.
  Note: You should only refund the buyer if you’ve received the returned good, or if the order was captured but you haven’t shipped it yet. For digital goods, before refunding, make sure the digital good hasn’t been used and can’t be used anymore by the customer.
• Provide easy access to customer service. Ensure customer service contact information is visible so customers can contact you with questions or concerns. Always respond to customer contacts as quickly as possible.
• Use a shipping method that provides a tracking number and/or requires a signature from the recipient.
  Note: As per Amazon Pay conditions, we require that orders are delivered to the delivery address provided during the checkout. In case of a chargeback due to an unauthorized charge, Amazon asks for a proof of delivery. In case this proof of delivery doesn’t match the delivery address provided during the checkout, the order might not be covered by the payment protection policy.
• For at least six months past the order date, keep records of the following:
  • Date on which you shipped the goods
  • Shipping method
  • Tracking information
  • Your order confirmation to the buyer
  • Any customer communication

For more information, see Chargeback FAQ.