Marketplace Chargebacks FAQ

California sellers facing chargebacks have rights under card network rules, platform policies, and state law. Chargebacks occur when buyers dispute charges through their credit card issuer rather than the merchant. Under California Commercial Code Section 2607, buyers must notify sellers of issues within reasonable time, and filing chargebacks without prior merchant contact may violate this requirement. Visa, Mastercard, and other networks have specific reason codes and evidence requirements for disputing chargebacks.

You typically have 7-21 days to respond with compelling evidence addressing the specific dispute reason. California Business and Professions Code Section 17500 requires accurate product representations, so ensure your documentation shows listing accuracy. For fraud claims, provide proof of authorization including AVS/CVV matches, IP geolocation, and delivery confirmation. California Civil Code Section 3294 allows punitive damages for fraud, potentially applicable to buyers who file false chargebacks. Document all transactions meticulously, including customer communications, tracking information, and product photographs, to support chargeback disputes and potential legal action against fraudulent buyers.

Friendly fraud (chargebacks from customers who received goods or services but dispute charges) is actionable under California law. California Penal Code Section 484 addresses theft by false pretenses, potentially applying when customers falsely claim non-receipt or unauthorized transactions. California Civil Code Section 3294 authorizes punitive damages for fraud.

To fight friendly fraud chargebacks, gather comprehensive evidence: tracking with delivery confirmation (signature for items over $100), photographs showing item condition, communications demonstrating customer awareness and approval, IP addresses and device information, and previous successful transactions from the same customer. Submit this evidence through the payment processor's dispute response system within required timeframes. California Business and Professions Code Section 17200 may support claims against systematic fraud. For high-value friendly fraud, file police reports under California Penal Code Section 484 - this creates official records and may support criminal prosecution. California small claims court (up to $10,000) provides a venue to sue fraudulent customers directly. Document the pattern of fraud to support both individual recovery and potential systemic claims against repeat offenders.

Winning chargeback disputes in California requires specific evidence tailored to the dispute reason code and compliant with card network rules. For fraud claims (unauthorized transaction), provide AVS (Address Verification Service) match confirmation, CVV/CVC verification, IP address and geolocation data, device fingerprint information, order confirmation sent to customer email, previous successful orders from same customer, and any customer authentication records.

For item not received claims, submit tracking numbers with carrier confirmation, delivery confirmation with signature (for items over $100-$750 depending on platform), proof of delivery to the address provided, and shipping insurance documentation. For item not as described claims, include original listing with detailed description and photographs, product photographs before shipping, customer communications acknowledging product details, return policy documentation, and evidence of any resolution attempts. California Commercial Code Section 2607 standards apply - buyers must provide timely notice of issues. Organize evidence clearly with a written statement explaining why the chargeback is invalid. California Evidence Code Section 1552 governs electronic record authentication.

California sellers can sue customers for chargeback fraud when the chargeback constitutes fraudulent conduct. California Penal Code Section 484 (theft by false pretenses) applies when customers obtain goods through deception, including false chargebacks. California Civil Code Section 3294 authorizes punitive damages for intentional fraud.

To pursue legal action, document the fraud thoroughly: proof of delivery, customer communications, the false chargeback claim, and any evidence of customer's actual receipt or use of the product. File a police report with your local California law enforcement agency - this creates official documentation and may support criminal prosecution. For civil recovery, California small claims court handles disputes up to $10,000 for individuals, $5,000 for businesses. For larger amounts, consider superior court with an attorney. California Civil Code Section 1709 addresses deceit, requiring proof that the customer made a false representation with intent to deceive and that you suffered damages. Recovery may include the chargeback amount, chargeback fees, shipping costs, and potentially punitive damages. Consider cost-effectiveness before pursuing litigation for smaller amounts.

Marketplace seller protection programs (Amazon Seller Protection, eBay Money Back Guarantee seller coverage, PayPal Seller Protection) operate as contractual arrangements subject to California law interpretation. Under California Civil Code Section 1636, protection program terms must be interpreted according to mutual intention, meaning platforms should apply eligibility requirements consistently.

Each program has specific requirements: eligible transaction types, required shipping methods, documentation standards, and exclusions. Amazon's A-to-Z Guarantee protections require tracking, timely shipping, and accurate listings. eBay's seller protections require proof of delivery and accurate descriptions. PayPal Seller Protection covers eligible transactions with tracking and signature confirmation for items over $750. If platforms deny protection claims despite meeting stated requirements, California Business and Professions Code Section 17200 may provide recourse for unfair practices. The implied covenant of good faith requires reasonable application of protection criteria. Document your compliance with all protection requirements for each transaction. When denied, appeal through platform processes with evidence of eligibility. For systematic denial issues, consider whether platform practices violate California consumer protection laws.

Chargeback time limits in California involve multiple overlapping deadlines from card networks, platforms, and state law. Card network rules generally allow cardholders 120 days from transaction date (or expected delivery date for delayed delivery) to file chargebacks, though some dispute types have shorter windows. Merchants typically have 7-45 days to respond to chargebacks depending on the card network and reason code.

Visa and Mastercard have specific timeframes for each dispute category. California Commercial Code Section 2607 requires buyers to notify sellers of defects within a reasonable time, and excessive delay may bar claims. For legal action against fraudulent chargebacks, California Code of Civil Procedure Section 338(d) provides a three-year statute of limitations for fraud claims. California Code of Civil Procedure Section 337 provides four years for written contract claims. Small claims court filing must occur within applicable limitations periods. Document all chargeback notices with receipt dates to track response deadlines. Set calendar reminders for dispute response windows. Missing response deadlines typically results in automatic chargeback loss regardless of merits. For disputed platform decisions after chargeback resolution, California Civil Code breach of contract claims have four-year limitations.

Preventing chargebacks requires implementing practices that address common dispute reasons while complying with California consumer protection laws. For fraud prevention, implement Address Verification Service (AVS), require CVV/CVC codes, use fraud screening tools (Stripe Radar, PayPal fraud protection), flag orders with mismatched shipping/billing addresses, and verify high-risk orders before fulfillment.

For item not received claims, use tracking on all shipments, require signature confirmation for items over $100, photograph packages before shipping, and provide customers with tracking information promptly. For item not as described disputes, ensure listings accurately describe products per California Business and Professions Code Section 17500, include multiple high-quality photographs, disclose all defects and conditions, and provide measurements and specifications. For customer service issues, respond to inquiries within 24 hours, offer easy returns per your stated policy, resolve complaints before they become chargebacks, and use clear billing descriptors customers recognize. California Civil Code Section 1793.2 warranty requirements apply to consumer goods. Document all transactions thoroughly to support potential dispute responses.

California has multiple laws addressing chargeback abuse and fraud that sellers can use for recovery and deterrence. California Penal Code Section 484 covers theft by false pretenses, applicable when customers make false chargeback claims to obtain free goods - this is a criminal offense punishable by imprisonment. California Penal Code Section 532 addresses obtaining money or property by false pretenses.

California Civil Code Section 1709 provides civil liability for deceit, requiring proof of false representation, knowledge of falsity, intent to induce reliance, justifiable reliance, and resulting damages. California Civil Code Section 3294 authorizes punitive damages when fraud is proven by clear and convincing evidence. California Business and Professions Code Section 17200 (Unfair Competition Law) covers systematic fraud schemes. For civil recovery, California Civil Code Section 3281 allows recovery of damages for every wrong, and Section 3287 provides 10% annual interest on damages. Document all fraud evidence including the original transaction, delivery proof, chargeback claim, and any evidence showing the claim was false. File police reports for criminal enforcement. Consider pursuing civil claims in small claims court for amounts up to $10,000.

California consumer protection laws create buyer rights that affect legitimate chargeback claims while also providing seller protections against abuse. The California Consumer Legal Remedies Act (Civil Code Section 1750-1784) prohibits unfair and deceptive practices, giving buyers grounds for chargebacks when sellers misrepresent products. California Business and Professions Code Section 17500 requires accurate advertising, supporting chargebacks for materially inaccurate descriptions.

The Song-Beverly Consumer Warranty Act (Civil Code Section 1790 et seq.) imposes warranty obligations that may justify chargebacks for non-conforming goods. However, these laws also protect sellers. California Commercial Code Section 2607 requires buyers to give timely notice of defects - chargebacks filed without contacting the seller may violate this requirement. California Civil Code Section 1689 allows contract rescission only for material breach, not minor dissatisfaction. Buyers who misuse chargeback rights may face claims under California Civil Code Section 3294 (punitive damages for fraud) and Penal Code Section 484 (theft). Document how your products and practices comply with California consumer protection requirements to defend against chargebacks and demonstrate when buyers abuse protections intended for legitimate disputes.

Receiving multiple chargebacks from the same buyer in California suggests systematic fraud warranting specific responses. First, document all transactions with this buyer including order details, communications, deliveries, and chargeback claims. California Penal Code Section 484 (theft by false pretenses) and Section 532 (obtaining property by fraud) may apply to systematic chargeback fraud.

Report the pattern to the marketplace platform through their fraud reporting channels - platforms may take action including buyer account suspension. File a police report with your local California law enforcement agency documenting the fraud pattern. California Civil Code Section 3294 authorizes punitive damages for fraud proven by clear and convincing evidence, and systematic fraud may support enhanced damages. Consider civil action in California small claims court (up to $10,000) or superior court for larger amounts, consolidating all fraudulent transactions into one claim. California Business and Professions Code Section 17200 provides additional remedies for systematic unfair practices. Block the buyer from future purchases on all platforms where possible. Share fraud information with industry databases where legally permitted. The pattern of multiple chargebacks strengthens both criminal complaints and civil fraud claims by demonstrating intent rather than isolated dispute.