This guide is designed to help sellers avoid platform violations. Please keep in mind that the policies and examples provided here are not exhaustive. TikTok Shop's policies may change periodically, so for the most up-to-date information, please visit the TikTok Shop Policy Center

What is a Chargeback?

A chargeback is a process where a buyer disputes a transaction and requests a refund directly from their payment provider, usually a credit card company or bank.

How do Chargebacks impact sellers?

When a buyer initiates a chargeback, the payment provider temporarily holds the funds for the disputed transaction while investigating. The provider reviews both the buyer's claim and the seller's response, along with any evidence provided.
Based on this review, the payment provider will determine the chargeback's validity:

• If approved, the funds will be returned to the buyer, and the seller's account will be debited for the disputed amount.
• If denied, the funds will remain with the seller.

When do chargebacks typically occur?

Chargebacks can occur for various reasons, including but not limited to:
🎯 The buyer did not receive the order
🎯 The order differed from the product description
🎯 The order arrived damaged
🎯 The charged amount exceeded the buyer's expectations
🎯 The buyer claims they did not authorize the transaction
🎯 Billing errors
🎯 Duplicate charges

How to Appeal a Chargeback Claim

Sellers must respond promptly with evidence to dispute chargebacks and validate the transaction to prevent financial losses. Here’s an overview of the typical chargeback dispute process:

Notification

The seller is notified in Seller Center when a buyer initiates a chargeback.

Gather Information

The seller must review the buyer's reason for the chargeback and gather supporting documentation, such as order details, buyer communication, proof of delivery, and tracking information, to validate the transaction.

Prepare Response

Based on the information gathered, the seller prepares a response addressing the buyer's dispute and provides evidence to counter the claims.

Submit Response

The seller submits their response and evidence through the Seller Center.

Await Decision

The payment processor will review both the seller's response and the buyer's claim, along with the submitted evidence.

Decision Notification

The seller will be notified of the payment processor's decision in the Seller Center. If the chargeback is resolved in the seller's favor, the disputed funds will be returned. Otherwise, the funds will remain with the buyer.

Resolution

The payment processor's chargeback decision is final. After the chargeback, the seller must take corrective actions, such as improving products, services, or processes, to prevent future chargebacks.

Required Information for Chargeback Dispute

Sellers must ensure that the documentation submitted to the buyer's financial institution, TikTok Shop's payment provider, or the card networks is accurate and relevant to the appeal:

Required Information for Appeal

🎯 Transaction status

🎯 Product description(s)

🎯 Proof of delivery to the buyer

Additional Documentation

Sellers may include additional documents, though they are not required:

🎯 Order confirmation emails

🎯 Details of order changes, refunds, or cancellations

🎯 Tracking numbers

🎯 Product images

🎯 Customer communication records

Best Practices to Prevent Chargebacks

To reduce the risk of chargebacks, sellers can take the following non-exhaustive proactive measures:

Clear and Accurate Product Descriptions

Provide accurate, detailed product descriptions to ensure buyers know exactly what they’re purchasing, reducing the chance of misunderstandings.

📍For more tips on listing products, check out 6 Things I Wish I Knew Before Starting My TikTok Shop

Quality Assurance

Ensure products match their descriptions and meet high-quality standards. Delivering quality goods and services reduces the risk of buyer dissatisfaction.

Timely and Responsive Customer Support

Respond quickly to buyers' concerns to reduce frustration and chargeback risk. Provide regular updates on shipping and fulfilment to avoid misunderstandings.

📍For more tips, visit How to Improve Your 24-Hour Response Rate

Transparent Policies

Clearly communicate policies on returns, refunds, and exchanges to set accurate buyer expectations.

Track and Analyse Chargeback Trends

Monitor chargeback reasons and trends to identify recurring issues and implement corrective actions.