How to win an “item not received” chargeback
6 min read · Updated
An item-not-received chargeback is the cardholder telling its bank it paid for something that never arrived. For a distributor that delivers every week, it's one of the most common disputes, and one of the most winnable, if the proof is on hand.
What it is
Each card network has its own reason code for it: 13.1 (Merchandise/Services Not Received) at Visa, and 4855 (Goods or Services Not Provided) at Mastercard. The cardholder's bank pulls the money back from you while the dispute is decided, and you get a deadline to answer with evidence.
Why distributors see it
- The delivery was signed by a cook or a stock clerk, not by the person who pays the bills.
- Accounts payable can't match the charge to a delivery, and disputes it to be safe.
- The dispute comes weeks later, when nobody remembers the delivery.
- Part of an order was short or damaged, and the customer disputes the whole payment.
The evidence that wins
- Proof of delivery: the date, the address and who received it, ideally with a signature.
- A tracking, route or delivery ticket number that ties the delivery to the invoice.
- A clear description of what was sold, matching the invoice's lines.
- Anything showing the customer had the goods: a reorder, an email about the delivery, a return of part of it.
- Your terms, if they cover deliveries and claims for missing items.
Build the evidence before the dispute
The best answers are the ones you don't have to put together after the fact. Record each delivery when it happens: the day, the person who signed and the ticket number. Tie it to the invoice. If goods are left at a back door, take a photo.
If the delivery is on file before your customer pays by card, it can travel with the payment, so the answer is ready the day a dispute arrives.
Answer on time, and keep it factual
Deadlines are short and are set by the card networks and your processor. Missing one usually means losing by default, whatever your evidence. Answer well before the date.
Keep the answer short and factual: what was delivered, when, where, to whom, and the documents that show it. Leave out frustration and anything you can't back up.
When not to fight
If the amount is small, the time to answer may be worth more than the payment. And if the customer is right (a delivery really went missing), refunding is faster and keeps the relationship. Fight the disputes your evidence wins.
General information about payments, not legal, tax or accounting advice. Rules change; check with your advisors for your situation.