3 ways to avoid charge backs in India


Have you ever worried on seeing an online store to buy a product you love because you are not absolutely sure if your transaction is secured or may not receive the product or may be the product will be damaged in transition. Well if you are an Indian online retailer these were the doubts that every new customer faces before making an online payment to you. Getting to the point a chargeback is a form of customer protection that is designed by the bank which issues credit card to its customer to protect them from fraudulent transactions and defective services like above during online shopping. If neglected it can effect your business badly. So, if your online store to be successful you must have through knowledge about the concept, as it is favourable to buyers some malicious buyers make use of the process to their own benefits . Hence let me provide the required eCommerce training for you about it.

What is a chargeback ? How does it work ?

As i said above a chargeback is form of customer protection for credit card holders from their bank when they found their online transactions fraudulent or charged even for defective services like non delivery of goods, damaged produdownloadct.

When a credit card holder has found he had been deprived of his services he paid for or charged for products he never bought from online he have a right to file a complaint with the bank to claim chargeback up to a certain period of time(which may vary between 40 to 180 days in India depending on card issuing banks). The customer’s bank informs the payment gateway provider which in turn recovers the amount from your current transactions or you are able to prove otherwise whichever is earlier.


A chargeback decreases your credibility even law is framed to support customers, you will be found guilty unless proven otherwise . Hence you will need to protect yourself from potential fraudsters and malicious buyers

Customers can also claim debit card and net banking transactions like chargebacks. Customer can directly approach the payment gateway provider and raise a charge against you and the resolution process in this case also remains the same.

How to avoid a chargeback?


  1. Have an eye on bulk orders

    If the customer orders bulk items they may not seem normal, you must have a look on them like multiple orders shipping to the same address but using multiple credit cards to order them if necessary must prompt customer to provide ID proof or make a call to crosscheck.

  2. Maintain clear records

    As an online retailer you should maintain clear documents like orders and invoices,suspicious IPguest-editorial-jan-2011 addresses,proof of delivery along with signatures of the person who collected the product that may be needed to submit in future to defend yourself from fraudulent claims. Should maintain a record of last 6 months, Its better to have insurance coverage on items that are fragile if damaged in transit can recover damages.

  3. Clearly Frame your terms and conditions

    Your terms and conditions should be clear and easy to understand, with circumstances that under which cases you will refund the customers and procedure they should to avail a refund, your rights in different cases not to allow refund the damages that customer should incur if proved to be fraudulent claims by suing them, make sure that all of them are adhering to relevant Indian laws.

The favourable thing to you is when customer files for a chargeback, the credit card company conducts a thorough investigation and you are provided a chance to prove and if you are a deprived party can also claim damages from customer by suing them. If a chargeback is raised refund their money if you haven’t delivered product otherwise provide necessary proof of delivery of products, so that you can start receiving payments through gateway after deducting the chargebacked amount and assist in investigation process.

Have you ever been a victim of chargebacks on your store? Do share your experience with us.

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