Chargebacks & Deductions

What is a chargeback in retail?

A retail chargeback is a fee a retailer charges a supplier for breaking a compliance rule. Late delivery, a missing ASN, the wrong carton label, an unapproved carrier, or a short shipment all carry their own charge. The retailer deducts it from payment instead of invoicing for it, so it arrives as a smaller remittance.

This is a different thing from a payment-card chargeback, which is a consumer disputing a transaction. In wholesale the term means a compliance penalty, and it is levied by the buyer against the supplier.

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How much of gross revenue retailers take back.

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