“Sorry, I just have to vent here… customer said the product didn’t fit, sent photos that matched the website exactly, then went straight to a chargeback. The bank sided with him, and I lost the product and paid a fee on top of it.”
That’s how one SME e-commerce merchant vented out their experience on reddit. Their story isn’t unique. Across industries, retailers say chargebacks feel less like consumer protection and more like legalized theft, where the merchant loses the product, the revenue, and an additional fee for the privilege of being overruled.
The numbers make it worse:
Merchants, faced with disputes, often respond by assembling extensive proof, as one seller described:
“Proof of shipping, courier website logs, even CCTV. Proof of delivery, a Google Maps screenshot of the customer’s house. Any correspondence showing we offered a return and refund.”
For many, the process feels less like customer service and more like assembling a case file. The question is whether these efforts are enough, and how merchants are fighting these disputes as they rise.
Merchant voices reveal the strain while the numbers expose the cost, and together they show that the real challenge isn’t just about winning disputes but about building systems of trust and prevention that reduce chargebacks before they happen.
To see how chargebacks play out in practice, let’s break the issue into its core parts- the triggers, the defenses, the outcomes, and the solutions merchants are putting in place.
In many cases, the surprise for merchants isn’t the claim itself but the path customers take, skipping return policies and going straight to their bank. It’s not always fraud, but often a reflection of how shoppers now expect speed and convenience in refunds.
One merchant explained the scale of the issue:
“I would say at least 70% of chargebacks we get are ‘friendly fraud’; i.e. the customer generally immediately resorts to a chargeback, rather than working with us to resolve the issue.”
“Customers can charge back up to 6 months after delivery. Sometimes it’s buyer’s remorse. Or they do it simply because they can.”
The data backs this up.
👉 Over half expect their money back in a day; anything slower feels like a delay.
Other seller point to social media has also shaped behavior,
“Or they do it because they saw a TikTok video explaining how to get free stuff.”
Platforms also reinforce this mindset. Features like Apple Card’s “Report an Issue” button make filing a dispute feel like routine customer service, not a last resort. Payment apps often include built-in dispute flows, conditioning shoppers to view banks as the default problem-solver.
Other factors also play a role:
In short, shoppers bypass returns mostly due to chargebacks are faster, normalized by social media and platforms, and carry no direct penalty for the buyer.
But not every case is about confusion or impatience. Some shoppers file chargebacks deliberately, even after receiving the product exactly as described.
That’s where merchants shift from prevention to defense, gathering evidence, using fraud detection tools, and, in some cases, pursuing legal action.
When disputes arise, many merchants approach them like legal cases. Instead of relying on a single document, they assembled a full package of proof that the sale was legitimate and that the customer had clear options for resolution.
One seller outlined their process:
We win them fairly frequently. We provide proof of shipping, courier website logs, even CCTV. Proof of delivery, the PoD and a Google Maps screenshot of the customer’s house. Any correspondence showing we offered a refund or return. Snips of our website with product dimensions. A returns policy that includes free next-day collection if faulty.”
This reflects the broader strategy many SMEs rely on:
Even with all this, success isn’t guaranteed. As the same seller admitted:
“Some customers still get away with it… from the bank’s point of view it’s just not worth fighting with them.”
So, while layered evidence makes a stronger case, the outcome ultimately depends on how card networks weigh the proof.
While enterprise retailers often adopt advanced fraud systems, many SMEs are also experimenting with them to cut losses. These tools score each transaction and, if approved, assume liability for chargebacks.
“We sell a ton of $3,000+ items, average order value is over $1000. We have a multi-layer approach to this, with the first and foremost being prevention. Strong fraud tools in place can help eliminate it”.
“It’s not 100% foolproof, but way better than trying to fight it alone”.
These systems give merchants leverage by:
For SMEs, merchants say this can be the difference between losing thousands a month to disputes or paying a small percentage to avoid them altogether.
When customers claim an item never arrived, delivery confirmation is one of the most cited defenses. Merchants say it’s not enough to provide a tracking number, you need layered proof.
One Shopify seller explained their approach:
“ For the most part I have won them but with good evidence, all customer communications, terms and conditions on our sites tracking showing delivered, I’ve gone as far as match the delivery photo with street view or even pull tax records to prove the shop to address was the customer and not a scammer.”
Other sellers highlight additional tactics:
“Take pics showing all of the contents inside the box as well as the taped-up box with its shipping label. Record the exact weight of the shipment + the carrier’s weight on the label. Those two numbers matching has helped us dispute missing item claims.”
Photos of the packaged box and courier delivery photos can be cross-checked with Google Street View to confirm the drop-off address.
But most merchants agree that the more proof you can stack up like shipping records, photos, weights, signatures the better your chances of winning.
Some merchants reduce losses by using automation tools that gather and submit evidence the moment a dispute is opened.
Instead of manually pulling order details, policies, and shipping records, these tools package it all for the bank, buying time and improving consistency.
Another seller noted the advantage of speed:
Winning chargebacks is all about timing, which is why it's good to use chargeback management apps (there are many on Shopify). These apps can instantly respond to cases with all the needed evidence on your behalf, and many of them operate on a success-based model.
But before using a tool like this, you need to make sure that your store is optimized to **not** receive chargebacks. So, revisit your shipping policy, product descriptions, and all of these components!
Here’s how merchants say automation helps:
But automation isn’t magic. Merchants stress that it only works if the store itself is in good shape: clear product descriptions, shipping policies up front, and customer service that answers fast. The automation just makes sure all of that is captured and sent to the bank before the window closes.
Merchants say prevention often starts before checkout is complete. By making refund and return policies prominently and requiring customers to actively acknowledge them, they’ve cut down on “friendly fraud” disputes.
One WooCommerce merchant explained how they reduced disputes by about 60%:
Instead of just attaching the policy in the confirmation email, we added a two-sentence reminder above the fold: “You agreed to our return & refund policy at checkout; if anything’s wrong, reply here. Issuing a chargeback without contacting us first violates the terms you accepted.”
Surprisingly, this alone stopped several “item not as described” cases from escalating.
Other approaches merchants use include:
Merchants who do this say it won’t prevent every dispute, but it lowers the risk by setting expectations early and creating a paper trail that can be used if a case escalates.
Not every merchant has the time or resources to build detailed case files for every dispute. For sellers dealing with high-ticket items or frequent chargebacks, outsourcing the process to specialists can make sense.
Chargeback management firms focus exclusively on this problem. They:
For SMEs, the cost can feel like an extra expense, but merchants who use these services argue the savings outweigh the fees. Especially when each lost case can mean not just the order amount, but also product, shipping, and chargeback fees.
In short, specialists don’t make disputes disappear, but they help level the playing field by handling the heavy lifting and increasing the odds of recovery.
Merchant experiences with chargebacks vary widely. For some, every case feels like a lost cause; for others, refining evidence and policies shifts the odds in their favor.
Even the numbers reflect the same struggle:
“Submitted parcel tracking number clearly showing delivery bank sided with the customer.”
Still, there are cases of wins, even if rare. One Shopify merchant shared their surprise after finally succeeding:
“I just did it through Shopify. I had some email correspondence between the customer that helped. It was months ago actually but I just got the notification today.”
Another merchant noted they had also won three disputes, suggesting that persistence and organized evidence can sometimes pay off.
This gap reveals a central truth: evidence matters, but outcomes still hinge on the bank’s process and bias toward its cardholder.
For some, the time and effort simply aren’t worth it. Merchants report issuing refunds proactively to avoid fees or sending disputes straight to collections when chargebacks are lost. Others lean into prevention, making return policies impossible to miss or automating their dispute responses.
In short: winning is possible but rarely guaranteed. The merchants who see better odds are those who systematize evidence collection, tighten policies, and accept that prevention often delivers more ROI than fighting each case individually.
AI powered protection platform like SureBright helps merchants offer coverage the right way, built directly into checkout, written in plain language, and clear about what’s included. That kind of transparency doesn’t just reduce chargebacks; it builds trust before there’s ever a problem.
Because when customers know what’s covered and how to get help, they’re less likely to panic, file disputes, or walk away.
Want to see how it works? Let’s Talk
Finally,
Chargebacks won’t vanish, but they don’t have to run your business either. The stories show two truths: some disputes are just deliberate plays, and those are tough to win.
But many more come down to simple gaps, slow refunds, unclear policies, or customers not knowing what to expect.
So, keep policies clear. Process refunds fast. Offer coverage upfront. And when someone pushes the system on purpose? Have a line, and a plan.
You can’t stop every dispute. But you can design an experience that makes chargebacks the exception, not the default.
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