The holiday shopping season is the busiest—and riskiest—time of year for eCommerce merchants. With higher order volumes, gift-driven purchases, delivery delays, and stressed shoppers, chargebacks tend to spike from mid-November through January. And once those disputes start rolling in, it’s often too late to prevent the financial and operational fallout.

The good news: with a few proactive steps, you can get ahead of the problem before the rush begins. Here’s how to lower chargebacks now so you enter Black Friday and Cyber Monday with confidence.

Why Chargebacks Surge During the Holidays

Understanding the root causes helps you build the right protections.

1. Delivery delays and carrier overload

Customers file “Item Not Received” disputes prematurely—even while orders are still in transit.

2. Gift-giving confusion

Many shoppers accidentally dispute legitimate gifts, forget what they purchased, or don’t recognize the billing descriptor on their statement.

3. Friendly fraud spikes

Holiday budgets get tight, and some customers resort to chargebacks instead of requesting a refund the proper way.

4. Subscription renewals collide with holiday spending

A surprising number of disputes stem from shoppers forgetting they joined a subscription before the peak season.

5. First-time buyers create new behavioral patterns

This makes it harder for automated fraud tools to detect risky activity without blocking good customers.

Step 1: Strengthen Your Order & Billing Communication

Clear communication is the most effective—and most overlooked—chargeback prevention strategy.

✔ Update your billing descriptor

Make sure customers recognize your business name when it appears on their bank statements. Add this language to:

• Your order confirmation emails
• Your checkout page
• Your post-purchase SMS or customer portal

✔ Provide detailed receipts and shipping timelines

Tell buyers:

• Exactly what they purchased
• When it ships
• What to expect if delays occur
• How to reach support

✔ Send proactive shipping updates

Late orders are the #1 cause of holiday disputes. Overcommunicate.

Step 2: Tighten Your Fulfillment + Proof of Delivery

If a customer disputes the charge, you need evidence.

✔ Require signature confirmation for high-value orders

Especially during BFCM when INR (“Item Not Received”) fraud skyrockets.

✔ Turn on photo proof of delivery

If your carrier offers it, use it. It’s extremely strong dispute evidence.

✔ Track every shipment

Include tracking links in emails, SMS, and onsite accounts.

Step 3: Reinforce Your Return & Refund Policy

Holiday returns can get chaotic. A strong policy reduces confusion and protects you during disputes.

✔ Make your return policy impossible to miss

Place it in:

• Cart
• Checkout
• Footer
• Post-purchase emails

✔ Set reasonable timelines for returns

Consider extending return windows during peak season to prevent shoppers from disputing instead.

✔ Clarify refund turnaround times

Many disputes arise simply because customers expect refunds faster than your systems can issue them.

Step 4: Prepare Your Customer Service Team

An overwhelmed support queue leads directly to chargebacks. Train your team to:

• Respond quicker during peak season
• Offer instant solutions for delayed shipments
• Walk customers through refunds instead of allowing disputes
• Handle subscription billing/support with extra clarity

A fast response reduces chargeback risk dramatically.

Step 5: Strengthen Your Fraud Prevention

Chargebacks aren’t always customer-driven—fraudsters also take advantage of the holiday rush.

✔ Update your fraud filters

Increase sensitivity on:

• AVS/CVV mismatches
• Velocity checks
• High-risk geolocation mismatches
• High-value first-time orders

✔ Review high-risk orders manually

Especially those with:

• Overnight shipping requests
• Multiple orders from the same device
• Mismatched billing/shipping
• Suspicious IP addresses

✔ Use dispute management tools

Bankful’s chargeback program and Visa’s VAMP rules can help you identify risky patterns before they become expensive issues.

Final Thoughts

Chargebacks are unavoidable—but they don’t have to derail your holiday revenue. With stronger communication, better fulfillment documentation, clear refund policies, and proactive fraud screening, you can reduce costly disputes before the season reaches full speed. Connect with the payment and fraud experts at Bankful to ensure your store is ready for this holiday season.