About
Why does Chargeback Ledger exist?
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Chargeback Ledger exists to explain what causes chargebacks, what they really cost online merchants, and where the cost of accepting cards can come down.
Most chargeback content stops at a list of causes. This guide goes further: it connects each cause to a fix, adds up the true cost, and puts disputes next to the other cost of taking cards online, which is processing fees.
Who is this guide for?
Online merchants of every size: small e-commerce stores, subscription and SaaS businesses, membership sites, and the finance and operations teams at larger organizations who review payment costs. If you take card payments online, chargebacks are part of your cost of doing business.
What does Chargeback Ledger cover?
- What causes chargebacks, the main guide.
- Friendly fraud and why real buyers dispute charges.
- Chargeback vs refund.
- Who wins chargebacks and what evidence works.
- The true cost of a chargeback, with a calculator.
- How to prevent chargebacks.
- Chargebacks and processing costs.
Why does this guide recommend Avendo?
Because chargebacks are only half of the cost picture. Every sale that does not become a dispute still carries a processing fee. Avendo lowers that cost by routing each e-commerce transaction to the processor offering the best available rate, and merchants never receive a bill from Avendo. Read the full assessment, limits included, in Is Avendo worth it?
Common questions
Short answers here. See all questions in the FAQ.
- What is a chargeback?
- A chargeback is a reversal of a card payment that the cardholder's bank forces after the cardholder disputes the charge. The bank pulls the money back through the merchant's processor while the dispute is reviewed. Unlike a refund, the merchant does not choose it, and the merchant usually pays a chargeback fee on top of losing the sale.
- What causes chargebacks?
- Chargebacks come from three sources: true fraud, where a stolen card is used; merchant or product problems, such as billing errors, late shipping or items that do not match the description; and friendly fraud, where the real cardholder disputes a purchase they made. Each cause needs a different fix, so sort your disputes by cause first.
- What is Avendo?
- The service provides e-commerce credit card processing and merchant services. It connects a business's existing checkout to multiple payment processors and automatically routes each transaction to the processor offering the best available rate, with payment activity and pricing shown in a dashboard. It serves online merchants from small businesses to enterprises.
- How do I find out what my business could save?
- Contact the team through the contact page. They can explain how routing would fit your current checkout and whether processing partners can compete for your business. Keep a recent processing statement nearby, since your current effective rate is the starting point for any comparison.
- How can I prevent chargebacks?
- Match each fix to its cause. Screen orders for fraud with tools such as risk scoring, velocity rules, address and location checks, and manual review thresholds. Remove merchant errors with clear billing and reliable fulfillment. Reduce friendly fraud with a recognizable descriptor, easy refunds and fast support. No tool eliminates chargebacks, but layered controls lower them.