> For the complete documentation index, see [llms.txt](https://help.alternativepayments.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.alternativepayments.io/payments-and-invoicing/payments-and-payouts/reducing-chargebacks.md).

# Reducing Chargebacks

### Best Practices to Prevent Chargebacks

When customers are charged automatically with our auto-charge or auto-pay features, and do not manually pay the invoice themselves, there is an increased risk of bank-initiated and customer-initiated chargebacks occurring. In order to mitigate ACH chargebacks when utilizing auto-charge and auto-pay, we have outlined our recommended guidelines.

1. Do not attempt to re-charge a customer after a failed ACH transaction. First, notify your customer to confirm that their bank account information is correct and that they have sufficient funds in the account.
2. Ensure you are charging your customer’s preferred payment method, and they have denoted this in their dashboard accordingly.
3. Confirm customers are aware they are being auto-charged or set up on auto-pay
4. Clearly communicate your refund policies to customers, and make it easy for them to request a refund if they are unhappy with their purchase

If ACH chargebacks persist with any given customer, our team will help you develop a strategy for capturing payment without any issues.

***

### Reducing Fees from Chargebacks and Disputes

If a chargeback occurs, prompt action can help resolve it and avoid future disputes. Here’s how to handle them and prevent repeated issues.

* **Standard ACH Chargebacks ($15 fee):** If a chargeback occurs, contact your customer to ensure the payment is successful upon retry.
* **Unauthorized ACH Chargebacks ($25 fee):** Ask your customers to whitelist Originator ID **8263863381** before initiating a payment.
* **Credit Card Disputes ($25 fee):** Make sure your company name is clear on statements and invoices are detailed.
* **Credit Card Transaction Fees (2.9% + $0.30):** Pass them through to your customers.
* **Debit Card Fees:** Encourage ACH payments when possible.

***

### Related Articles

* [ACH Chargebacks](/payments-and-invoicing/payments-and-payouts/ach-chargebacks.md)
* [Credit Card Disputes Best Practices](/payments-and-invoicing/payments-and-payouts/credit-card-disputes-best-practices.md)
* [Dispute Evidence Submission Requirements](/payments-and-invoicing/payments-and-payouts/dispute-evidence-submission-requirements.md)

**Love our platform?** Rate us on [Channel Program](https://channelprogram.com/v/alternativepayments) and check out our [Referral Program page](https://www.alternativepayments.io/referral-partners/)!


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation by asking a question.

Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters:

```
GET https://help.alternativepayments.io/payments-and-invoicing/payments-and-payouts/reducing-chargebacks.md?ask=<question>&goal=<user_goal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.