Holiday Season Chargeback Prevention -Tis The Season

Amidst the holiday season, merchants are diligently gearing up for a surge in sales, especially with the growing trend of people opting for e-commerce platforms for their holiday shopping. This shift presents a promising opportunity for substantial revenue gains for e-commerce merchants. However, the subsequent weeks also harbor the potential for significant revenue losses.

The sudden spike in purchases from new customers during the holidays frequently increases fraud, shipping errors, and chargebacks. Unfortunately, this influx of holiday season chargebacks persists well into the new year. 

We created this page to help you defend against chargebacks this holiday season.

Key Takeaways

  • Increases in fraud, shipping delays, and mixed-up orders can cause holiday season chargebacks.
  • Merchants should allocate sufficient resources for increased sales, fulfillment, and customer service demand to prevent chargebacks.
  •  High chargeback ratios can result in penalties or fines, harm a merchant’s reputation, and disrupt cash flow and business operations.
  • Working with a chargeback management company such as CB-ALERT can significantly reduce your chargebacks.

Tis The Season For Chargebacks

During the holiday season, you’ll likely see a rise in chargebacks due to fraud, shipping delays, and order mix-ups. As sales volume increases, so does the potential for these issues, especially for card-not-present transactions.

Apply Today

Applying with CB-ALERT is an easy process—simply follow these steps to submit your application. The application process is user-friendly and will link you with the essential support and guidance needed.

To expedite your approval for chargeback management, we’ll need the following details:

  1. Company name
  2. Registered business address
  3. Merchant account descriptor
  4. Merchant account number issued by your payment processor
  5. Access to your sales system for handling refunds and alert resolution on your behalf.

Apply now to initiate the process and benefit from effective chargeback management.

Why Do Holiday Season Chargebacks Occur

Chargebacks rise during the holiday season due to both true and friendly fraud. Due to lags in shipping time and an increase in overall sales, fraudsters tend to exploit the system.

Why Are They So Costly

Each chargeback incurs a fee, typically $20 to $100. If you win the dispute, you might get this fee back, but the time and resources spent fighting the chargeback remain a sunk cost.

Additionally, chargebacks lead to higher payment processing fees and damage your reputation with customers and your bank/payment processor.

Which Industries Suffer The Most Holiday Chargebacks?

While managing chargebacks is crucial for all businesses, certain industries suffer more from holiday chargebacks than others.

Retail and e-commerce sectors are hit hardest due to the surge in online shopping during the holiday season. This increase in transactions opens the door for more instances of fraud and customer disputes, leading to a rise in chargebacks.

The travel and hospitality industry also see a significant spike during this period, as cancellations and service disputes became more frequent.

Digital goods businesses also experience an uptick in chargebacks during the holiday season.

Holiday Chargeback Prevention

Don’t let the chargebacks spoil your holiday season. Below is our ten-step guide to preventing chargebacks during the holidays.

  1. Deploy Robust Fraud Prevention Tools: Strengthen your defenses against fraud using advanced tools such as 3DS2 authentication, RDR, and Ethoca/Verifi alerts.
  2. Optimize Merchant Descriptor: Make your company easily recognizable using an accurate merchant descriptor matching your online storefront name. This clarity helps prevent confusion and reduces the likelihood of chargebacks.
  3. Partner With CB-ALERT: Collaborate with CB-ALERT to proactively eliminate fraudsters and prevent chargebacks from occurring in the first place.
  4. Ensure Transparent Transaction Details: Communicate transaction specifics clearly to your customers, including the purchase details, pricing, and associated fees. Clarity minimizes the chances of chargebacks resulting from customer misunderstandings.
  5. Prioritize Refunds Over Chargebacks: In most cases, offering a refund is more cost-effective than dealing with a chargeback. Refunds also enhance the possibility of retaining the customer’s loyalty.
  6. Round-the-Clock Customer Service: Exceptional customer service is pivotal in combating chargebacks. Prompt and satisfactory resolution of customer issues can prevent disputes from escalating to chargebacks.
  7. Use Clear and Concise Billing Descriptors: Ensure that the billing descriptor on your customer’s credit card statement is easy to comprehend, reducing confusion and, subsequently, the likelihood of chargebacks.
  8. Maintain Accurate Records: Keep detailed records of all transactions, including customer contact information, order specifics, and any customer communication. This documentation can be invaluable in chargeback disputes.
  9. Employ Chargeback Monitoring Systems: Utilize chargeback alert systems to address and manage dispute cases promptly.
  10. Scrutinize Irregular Orders: Be vigilant about orders that deviate from the norm, such as transactions from unfamiliar countries or vast amounts. Investigate these cases to ensure accuracy and security.


Choosing CB-ALERT for your chargeback management can significantly streamline your holiday season operations, helping you prevent potential fraud and reduce the risk of costly chargebacks. 

Be prepared for the holiday season so that you can stamp out fraud before it begins.

By partnering with CB-ALERT, you can alleviate the challenges associated with chargebacks, freeing up valuable time and energy to focus on the efficient management and continuous growth of your holiday retail business.

Hiring a chargeback management company can substantially mitigate the impact of holiday chargebacks and clarify their origins.

Below is a quick summary of how chargeback management companies can help you during the holidays.

  1. Expertise: Chargeback management companies possess extensive expertise in handling holiday chargebacks. Their in-depth knowledge of the industry, regulations, and card network rules enables them to construct robust cases for representment.
  2. Analytics: At CB-ALERT, our advanced analytics tools pinpoint patterns and trends in holiday chargebacks. Through data analysis, we uncover underlying issues leading to chargebacks and implement strategic measures to prevent future occurrences.
  3. Increased Win Rate: Outsourcing chargeback management to our team at CB-ALERT significantly enhances your likelihood of winning disputes. \

Now that you understand the impact of chargebacks in the holiday retail industry take the next step by filling out the application below to discover how CB-ALERT can positively impact and safeguard your business.

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