Costs · P&L lines 10, 23
Chargeback
A payment reversed by the customer's bank, plus a fee.
Where it lives in nouz
The P&L, lines 10 and 23.
A chargeback is a payment pulled back by the customer's bank after a dispute. The merchant loses the disputed amount and is usually charged a fee on top. It is not a return: no parcel comes back, so on a P&L the amount belongs with returns and the fee with transaction costs.
It is not a return: there is no parcel coming back, so there is no return processing cost and no restocking. Treating the two the same overstates your logistics costs and understates your fees.
In a P&L the disputed amount belongs with returns and the fee belongs with transaction costs, attributed to the gateway that charged it, which is exactly how nouz books the two halves.
A handful of chargebacks is a cost of taking cards; a rising rate is a signal about fraud, product claims or delivery times, and it deserves attention long before the fees hurt, because providers price and even terminate accounts on it. The payment fee calculator carries a chargeback line for exactly this reason.
Related terms