A chargeback is when funds are returned to a card owner after they dispute a transaction on their statement to the card company or PayPal.

When this happens, the credit card company or Etsy's third-party payment partner contacts Etsy asking for some details about the transaction so the dispute can be resolved. Etsy may need additional information from you as well.  

Why do buyers file chargebacks?

There are several reasons why a cardholder might file a chargeback which include, but are not limited to:

• The card owner reports they didn’t make the purchase, and suspect their card was used without permission.
• The order never arrived.
• The order has arrived, but it’s not what was described in the listing.
• The order arrived, but it was damaged. 

How do I resolve a chargeback?

After Etsy is contacted about a chargeback, we may need additional information from you to resolve the dispute. You’ll receive an email to the address associated with your Etsy account. In this email, you’re given a time frame to respond with the necessary info so we can resolve the dispute and potentially avoid a refund being issued on your behalf. 

Refunds are issued through a debit reflected in your Payment account, rather than a refund for the order. This is to protect you from accidentally issuing the cardholder a double refund. 

How can I avoid a chargeback in the future? 

Communicating with your buyers, publishing detailed shop policies, and having detailed listings are all great ways to help prevent future chargebacks. Learn more tips for providing excellent customer service.

It’s a good idea to use a secure delivery method, like postage labels purchased on Etsy, with tracking and/or delivery confirmation.