Vendor Refund & Chargeback Policy

Overview

This Vendor Refund & Chargeback Policy outlines vendor responsibilities for handling refunds, returns, and payment disputes on the Buy BLK platform. Compliance with this policy is mandatory for all vendors.

Vendor Refund Obligations

1. Standard Refund Scenarios

Vendors must issue refunds within 48 hours for:

• Order Cancellation: If vendor cannot fulfill the order
• Product Quality Issues: Defective, damaged, or spoiled items
• Wrong Items: Incorrect products delivered
• Non-Delivery: Order not received within promised timeframe
• Material Misrepresentation: Product significantly differs from listing

2. Partial Refunds

Vendors may issue partial refunds when:

• Only some items in an order are problematic
• Product is usable but has minor defects
• Customer agrees to keep item at reduced price
• Substitute items were provided at lower value

3. Return Requirements

For physical returns:

• Vendor must provide return instructions within 24 hours
• Vendor covers return shipping for vendor errors
• Customer covers return shipping for buyer's remorse (if accepted by vendor)
• Refund processed within 5 business days of receiving returned item
• Perishable items (food) are not eligible for return unless defective upon delivery

Chargeback Management

1. What is a Chargeback?

A chargeback occurs when a customer disputes a charge directly with their credit card company or bank, bypassing the vendor. This triggers a formal investigation and fee structure.

2. Chargeback Fees

When a chargeback is filed, vendors are responsible for:

• Transaction Amount: Full order value is immediately debited
• Chargeback Fee: $15-25 per chargeback (non-refundable even if won)
• Processor Penalties: Additional fees from payment processor
• Platform Administrative Fee: $25 per chargeback for review and management

3. Vendor Response Requirements

When notified of a chargeback, vendors must:

• Respond within 48 hours of notification
• Provide supporting documentation:
  • Order confirmation and receipt
  • Delivery confirmation (tracking, signature, photo)
  • Customer communication records
  • Product photos if applicable
  • Any evidence disproving the dispute reason
• Cooperate with Buy BLK and payment processor investigations
• Do not contact the customer directly about the chargeback

4. Common Chargeback Reasons & Prevention

Excessive Chargeback Policy

Chargeback Ratio Calculation: (Total Chargebacks / Total Transactions) × 100

Friendly Fraud Protection

"Friendly fraud" occurs when customers dispute legitimate charges. To protect against this:

• Require photo confirmation at delivery
• Document all customer interactions
• Send delivery notifications with tracking
• Clearly state your refund policy on listings
• Respond professionally to all customer concerns before they escalate
• Use signature confirmation for orders over $100

Vendor Financial Responsibility

1. Immediate Debits

When a chargeback or refund is processed, Buy BLK will immediately debit:

• Transaction amount from vendor's available balance
• Applicable chargeback fees
• If insufficient balance, future payouts will be held until debt is satisfied

2. Payout Reserves

Vendors with elevated chargeback ratios may be subject to:

• Rolling reserve (10-20% of sales held for 30-90 days)
• Delayed payout schedules
• Higher platform fees to offset risk

Best Practices to Minimize Disputes

Platform Support

Buy BLK provides:

• Dispute mediation between vendors and customers
• Chargeback representation to payment processors
• Documentation assistance for chargeback defense
• Performance analytics to track refund/chargeback rates
• Educational resources on dispute prevention