Vape Chargeback Prevention Specialists

Are you a vape merchant looking to drastically reduce the number of disputes your company receives every month? You’ve come to the right place. At CB-ALERT, we help merchants stamp out fraud before it even begins, allowing them to save money on fees and free up valuable time.

Over the years, we have worked with countless vape merchants and understand why most disputes occur and what the solution is. When it comes to vape-related disputes, we see through the smoke and seek out the true cause to your disputes.

Key Takeaways

  • Vape shops face the potential for higher chargebacks than other industries.
  • Vape shops are considered high-risk businesses due to factors such as high chargeback rates, strict government regulations, and health risks associated with vaping.
  • CB-ALERT has extensive experience regarding chargebacks in the vape industry.
  • Dealing with chargebacks involves signing up for alerts, aggressively fighting illegitimate chargebacks, and teaming up with CB-ALERT.
  • Ensuring your company uses accurate billing descriptors and has 24/7 customer service can help reduce your chargebacks immensely.

What Are Vape Chargebacks

vape chargeback prevention

In your vape business, chargebacks occur when a customer disputes a credit card transaction. These disputes arise from perceived fraudulent activity or dissatisfaction with a product or service. Regardless of the reason, each chargeback can cost you more than the disputed amount, considering the fees and administrative costs.

An example of a vape industry chargeback: A customer is sent the wrong vape juice and is frustrated. Instead of taking it up with the merchant, they call their bank to dispute the charge.

Why Do Chargebacks Occur In The Vape Industry?

Many online vape transactions face higher risk due to age restrictions and the potential for fraud. Customers might use stolen credit cards or dispute charges falsely, leading to ‘friendly fraud.’

The vape industry is seen as high-risk by banks due to strict regulations and health concerns, leading to higher chargeback rates.

The vape industry often deals with chargebacks as a result of dropshippers. Dropshipping typically delays receiving the goods, typically with minimal customer service. 

Another significant reason the vape industry deals with chargebacks is if their billing model is recurring. Many companies use this billing model, and for fraudsters, this can be exploited via friendly fraud, with the ultimate goal being receiving products for free.

Why Are Chargebacks So Expensive In This Industry?

Like any industry, there’s a true cost of chargebacks, which is far more significant than the actual cost of the goods.

First, there’s the direct cost: the loss of revenue from the disputed transaction.

Then, you have the chargeback fees imposed by the banks, which can range from $20 to $100 per incident.

If your company exceeds the chargeback threshold, you can find yourself in trouble with your payment processor, resulting in account termination or higher fees.

Furthermore, with every chargeback, you typically lose trust in your brand and products. The most important thing for a vape shop is to build trust within the community that they are offering legitimate products and customer service.

How To Prevent Vape Chargebacks

To keep your vape business thriving amidst the challenges, you must implement strategies to prevent chargebacks.

  • Fraud Prevention Tools Stay sharp and ahead of the curve using tools like 3DS2 authentication, RDR, and chargeback alerts to outsmart fraudsters.
  • Billing Descriptors: Ensure that your business name on financial statements is clear and unmistakable, like putting a bold sign on your shop for easy recognition.
  • Partner with CB-ALERT: Team up with CB-ALERT, the experts dedicated to keeping fraudsters at bay. It’s like having a trusted ally by your side.
  • Add an Extra Layer of Security: Prioritize customer authentication to shield against chargebacks and ensure each transaction is rock-solid, like adding an extra lock to your door.
  • Deliver Exceptional Customer Care: Treat your customers like royalty. Swiftly address their questions and concerns for happier customers and fewer chargebacks.
  • Extend a Helping Hand with Refunds: Offering a refund can be like extending an olive branch. It’s often a more cost-effective solution than dealing with chargebacks and can turn a disappointed customer into a loyal one.
  • Verify Customer Readiness: Before diving in, ensure your customers are financially prepared for your coaching services, like making sure your team is geared up for a big game.
  • Keep Detailed Records: Think of your records as a keepsake of your coaching journey. Document every interaction – names, orders, and conversations. They’re your safety net in case of disputes.
  • Scrutinize Every Transaction: Like checking IDs at the door, be cautious of orders from unfamiliar places or significantly higher amounts. Verify each one to keep chargebacks at bay.

Finding A Chargeback Prevention Company

The right chargeback prevention company can help you minimize losses, improve your bottom line, and allow you to focus on growing your business.

We recommend checking out various chargeback management companies before deciding on which to choose.

Below is a quick list of what to look for in a chargeback company:

  • Real-time reporting
  • Proactive chargeback prevention measures
  • A comprehensive approach to fraud prevention
  • Check their reputation:
  • Google reviews
  • Client testimonials
  • Industry awards or recognitions


At CB-ALERT, our team goes back over two decades in the high-risk payment processing space. We created CB-ALERT to help clients fight fraudsters and save money.

Our platform sends real-time notifications whenever a chargeback is initiated, giving you a chance to mitigate losses promptly. Its robust system integrates seamlessly with your payment process, ensuring smooth operations.

Please fill out the application below to learn how CB-ALERT can take your fraud management game to the next level.

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