Amazon is the eCommerce platform of choice for many merchants. As the world’s largest online retailer, Amazon offers valuable digital seller services and unmatched access to a global audience. Its software solutions have significantly lowered the barriers to entry for eCommerce. What began as an online bookstore has transformed the retail landscape for merchants.
While Amazon offers major benefits to sellers, it also exposes them to chargeback risks. Chargebacks can be an unpleasant surprise, as customer-disputed transactions can lead to sale reversals, fees, and added workload. If you plan to sell on the Amazon marketplace, chargebacks pose a direct threat to your business revenue.
Fortunately, Amazon provides different types of payment protection for sellers. Letโs explore Amazonโs approach to buyer disputes so youโre better prepared to manage and minimize chargebacks.
Key Takeaways
- Amazon sellers face three types of disputes: buyer complaints, A-to-Z guarantee claims, and bank-initiated chargebacks.
- When a chargeback happens, sellers are charged a $20 fee and have just 11 days to submit evidence.
- Fraud-related chargebacks are typically covered, but sellers are generally responsible for resolving service-related issues on their own.
- Amazon immediately deducts disputed amounts from the sellerโs account, and repeated chargebacks can lead to account suspension.
- To stay protected, sellers should monitor their dashboards daily, maintain thorough records, respond promptly to customers, and utilize Amazonโs fraud detection tools.
The Difference Between Chargebacks and Amazon Seller Protections
The chargeback process enables consumers to dispute charges made with their credit cards. A customer can contact their issuing bank to contest a fraudulent or incorrect transaction. This protection builds consumer trust in the payment system.
For merchants, however, chargebacks are costly and disruptive. Sellers must absorb the cost of sale reversals, along with fees for each dispute. Buyers may also exploit these protections through friendly fraud, causing unjustified revenue losses.
To resolve disputes between buyers and sellers, Amazon offers three types of protection:
1. Buyer disputes
Amazon encourages customers to first raise complaints directly on its platform. Through the Amazon Pay Buyer Dispute Program, Amazon mediates disputes, giving sellers a chance to resolve issues (such as refunds or delivery problems) before they escalate.
2. A-to-Z guarantees
Amazon provides A-to-Z guarantees to boost buyer confidence in third-party sellers. Buyers are eligible for refunds if they first try to resolve the issue with the seller. This program is designed to reduce formal chargebacks related to dissatisfaction, buyerโs remorse, or third-party order issues.
3. Chargeback support
If a customer files a chargeback with their bank, you can challenge it with Amazonโs help. Sellers must pay a $20 dispute fee and submit evidence, but Amazon will represent them and help build a case.
What is Amazon Pay?
Amazon Pay is Amazonโs official payment processor. It handles all payment-related services tied to your merchant account and Seller Central, including checkouts, transfers, and transactions. It also manages chargeback programs, buyer disputes, and A-to-Z guarantees.
All chargeback alerts and dispute notifications are issued via Amazon Pay. When faced with a chargeback, sellers can choose to issue a refund, accept the chargeback, or dispute it with Amazon Payโs assistance.
Amazon Pay Chargebacks and Payment Protection Policies
Amazon Pay offers some seller protections. Since Amazon is the merchant of record for all marketplace transactions, it initially handles chargeback inquiries from the card issuer. This allows Amazon to provide protection for certain types of chargebacks without charging additional fees to sellers, as outlined in Amazon’s Pay Protection Policy.
However, these protections only cover chargebacks tied to unauthorized transactions, generally cases of fraud. Service-related chargebacks, such as incorrect product descriptions, damaged goods, late deliveries, or overcharges, are not covered under Amazonโs seller protection.
While Amazon will still represent sellers in these disputes, losing a service-related case means the seller is responsible for the chargeback amount and all associated fees.
Recent Policy Changes Affecting Sellers (2024-2025)
New “In Full Delivery” Chargeback Category (2025)
Amazon introduced a new chargeback category for vendors who fail to deliver complete orders. This change, implemented in July 2025, reduces the Not Filled fee from 10% to 5% but introduces stricter compliance requirements for delivery completeness.
Reimbursement Policy Changes (December 2024)
Amazon significantly shortened claim windows for sellers:
- Fulfillment Center Operations Claims: Must be submitted within 60 days (down from 18 months)
- FBA Customer Returns Claims: Window reduced to 60-120 days (previously 60 days to 18 months)
- Reimbursements now based on manufacturing cost rather than selling price
Merchant Responsibilities With Amazon Pay
To contest any dispute, whether a buyer complaint, A-to-Z claim, or official chargeback, sellers must provide detailed transaction evidence.
Amazon uses this evidence to represent sellers, make internal dispute decisions, and assess whether the seller qualifies for chargeback coverage. Proving that you acted in good faith and met all customer obligations increases your chances of winning a dispute or receiving compensation.
Sellers have 11 calendar days from the date of chargeback notification to submit supporting evidence. Failure to meet this deadline results in Amazon debiting the chargeback amount from your account.
For complete guidance on what evidence to submit, consult the Amazon Pay Chargeback FAQ.
Supplement Your Amazon Seller Protections
While Amazon offers robust built-in protections, they are not all-encompassing. Sellers must still invest time and effort into dispute resolution. Additionally, service-related chargebacks (often involving customer dissatisfaction or delivery issues) are not protected, leaving sellers exposed to costs.
To enhance your protection, consider using third-party chargeback automation tools, like Justt. These solutions can streamline the dispute process, monitor transactions, and provide extra defense against false claims.
Understanding the wider regulatory context is also important. Rules from the Federal Reserve and the Consumer Financial Protection Bureau shape how chargebacks are processed. Sellers should also review Visaโs and Mastercardโs chargeback policies for broader industry knowledge.
Final Thoughts
While Amazon offers several layers of protection against chargebacks, sellers are still left vulnerable, especially when it comes to service-related disputes. These types of chargebacks can slip through Amazonโs safeguards and result in significant financial losses, even for merchants who follow best practices.
Thatโs where Justt comes in.
Justt is a comprehensive, automated chargeback management platform built to take the burden off your team. Unlike Amazonโs limited protections, Justt defends against all chargeback types, including those that Amazon doesnโt cover. Using advanced automation, expert custom case-building, and deep payment network expertise, Justt handles every step of the dispute process and recovers revenue that would otherwise be lost.
Donโt let chargebacks eat into your profits. Let Justt fight for your revenue so you can focus on growing your business.
Contact us to learn more.
FAQs About Amazon Chargebacks
What’s the difference between an Amazon A-to-Z guarantee claim and a chargeback?
An A-to-Z guarantee claim is Amazon’s internal dispute resolution system where Amazon mediates between buyer and seller. A chargeback is initiated directly with the customer’s bank or credit card company, bypassing Amazon’s internal processes. Amazon prefers buyers use A-to-Z claims first to avoid formal chargebacks.
Does Amazon’s Payment Protection Policy cover all types of chargebacks?
No. Amazon’s Payment Protection Policy only covers unauthorized transactions (typically fraud-related). Service-related chargebacks such as product defects, shipping issues, or customer dissatisfaction are not covered, leaving sellers liable for all associated costs and fees.
How long do I have to respond to a chargeback notification from Amazon?
You have 11 calendar days from the notification date to provide evidence disputing the chargeback. If you miss this deadline, Amazon will automatically debit your account for the chargeback amount, and you’ll lose the opportunity to contest it.
What evidence should I provide when disputing an Amazon chargeback?
Provide comprehensive documentation including: order confirmation emails, shipping tracking information, delivery confirmations, customer communication records, product descriptions, return policy acknowledgments, and any photos or videos of the shipped items. The more detailed your evidence, the better your chances of success.
Can I get the $20 dispute fee refunded if I win the chargeback?
Yes, if Amazon successfully disputes the chargeback on your behalf and the issuing bank rules in your favor, the $20 dispute fee will be refunded to your account. However, if you lose the dispute, you’ll pay both the chargeback amount and keep the $20 fee.
What happens if my chargeback rate gets too high on Amazon?
High chargeback rates can trigger Amazon’s performance review process, potentially leading to account restrictions, additional fees, or account suspension. Amazon expects sellers to maintain chargeback rates well below 1% of total transactions and takes action against sellers who consistently exceed performance thresholds. Monitor your performance through the Amazon Seller Central Performance Dashboard.
Should I accept chargebacks or always fight them?
This depends on your evidence strength and the chargeback reason. If you have strong documentation proving the transaction was legitimate and the product/service was delivered as described, it’s worth disputing. However, if the customer has a valid complaint (defective product, wrong item shipped), it may be more cost-effective to accept the chargeback and focus on preventing future issues.
How are Amazon Vendor Central chargebacks different from Amazon Seller chargebacks?
Vendor Central chargebacks are compliance-related penalties Amazon charges suppliers for not meeting performance standards (late deliveries, packaging issues, incomplete orders). Amazon Pay/Seller chargebacks are customer-initiated payment disputes. Both affect your account differently and have separate resolution processes.
Can I use third-party chargeback management services with Amazon?
Yes, many sellers supplement Amazon’s built-in protections with third-party chargeback management services. These services can help with evidence compilation, monitoring, and representation for service-related chargebacks not covered by Amazon’s Payment Protection Policy.
What’s changed about Amazon’s chargeback policies in 2025?
Key 2025 changes include: new “In Full Delivery” chargeback category for vendors, shortened reimbursement claim windows (60 days vs 18 months), reimbursements now based on manufacturing cost rather than selling price, and stricter compliance monitoring for delivery performance.
