A chargeback is a forced reversal of a payment transaction initiated by a customer's bank or card issuer, typically following a disputed purchase or claim of fraud. Understanding how chargebacks work is essential for ecommerce businesses to protect revenue and reduce dispute losses.
Chargebacks are one of the costliest operational challenges for online retailers. Beyond the lost sale value, each dispute triggers processing fees, administrative overhead, and reputational damage — particularly when disputes are unfounded.
A typical chargeback costs £15–£100 in processing fees alone, on top of the refunded transaction amount. For high-volume sellers, even a small chargeback rate compounds into significant annual losses.
Responding to a chargeback requires gathering evidence, documenting the transaction, and submitting a rebuttal within strict timeframes — often 7–10 days. Without organised records, many merchants lose disputes by default.
Merchants frequently face chargeback claims of 'item not received' or 'wrong item shipped' without documented proof of the actual contents packed and the condition at dispatch. Without photos and videos of the packing and sealing process, rebutting these claims is nearly impossible.
High chargeback rates trigger penalties from payment processors, increased scrutiny, and potential account suspension. Repeated disputes damage customer trust and brand reputation.
A customer claims they did not authorise the purchase or did not receive the item as described. The card issuer investigates and, if unconvinced by the merchant's evidence, reverses the charge.
Some customers initiate chargebacks knowing they will not be challenged — a practice known as 'friendly fraud'. They claim non-delivery or request a refund through their bank rather than the merchant, forcing a dispute.
Lost parcels, delayed deliveries, or items arriving damaged genuinely trigger customer disputes. Without evidence of what was packed, how it was sealed, and its condition at handover, the merchant cannot defend the charge.
Many merchants lack centralised evidence of packing, inspection, and dispatch. Without timestamped photos and videos of the packed state, BOL confirmations, or carrier handover records, chargebacks proceed unchallenged.
Chargebacks are sometimes triggered by slow refund processing or poor customer service communication. Customers dispute rather than wait for a merchant resolution.
PackProof seals photos and videos of your packing, inspection, and dispatch process with SHA-512 cryptographic certification and immutable timestamps. This creates tamper-proof evidence that proves exactly what was packed, when, and by whom — transforming chargeback disputes from losses into defensible challenges.
When a chargeback claim arrives, retrieve certified photos and videos of the exact items packed and the sealed condition at dispatch in seconds. Submit this timestamped, tamper-proof evidence to your payment processor or card issuer, dramatically increasing your win rate.
Capture both photos and videos of incoming stock, inspection, packing, sealing, label placement, and carrier handover. Photos document condition close-ups and checklists; videos prove process integrity and seal witnessing. Together, they eliminate ambiguity about what left your warehouse.
SHA-512 certification means your evidence cannot be altered or backdated. Card networks and dispute adjudicators recognise cryptographically sealed records as court-grade proof, shifting the burden back to the claimant to disprove your evidence.
By winning more disputes and preventing fraudulent claims through transparent, certified records, you lower your overall chargeback ratio. Lower rates improve your standing with payment processors, reduce fees, and protect your merchant account.
On receipt, capture photos and video of all incoming items showing condition, packaging, and any visible damage. PackProof seals these records immediately with a cryptographic hash and timestamp, creating an audit trail of stock state before packing begins.
As items are packed and inspected, take photos of each item's condition, placement in the box, and inspection checklist completion. Record short video clips of the sealing process, tamper-evident tape application, or any special handling — all sealed with certified timestamps.
Before handing the parcel to the carrier, photograph the packed box, shipping label, tracking number, and any BOL or signature. If using video, record a brief walk-around or hand-off to the courier, showing the parcel's sealed state and the moment of transfer.
When a chargeback claim arrives, open PackProof, locate the shipment, and instantly download your sealed photos and videos along with cryptographic proof certificates. Submit this evidence to your payment processor or card network within their dispute window — your certified records speak far louder than the claimant's unsubstantiated claim.
Create sealed, certified photos and videos of every shipment with PackProof. Try the free plan — capture and seal evidence immediately, no credit card required. When chargebacks arrive, you'll have tamper-proof records ready to win.