What is the difference between a chargeback and a deduction?
A chargeback is a specific penalty for a compliance failure. A deduction is the mechanism by which any withheld amount reaches you, penalties included. Every chargeback arrives as a deduction; most deductions are not chargebacks. Trade allowances, promotional funding, and shortage claims are deductions with no compliance failure behind them.
The distinction decides who owns the fix. A chargeback points at an operational process that broke. An allowance deduction points at a commercial agreement and belongs with whoever negotiated it.
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