Is it valid, could we have prevented it, and did a partner cause it: how to ask all three for each deduction.
A chargeback raises three questions: is it valid, could you have prevented it, and did a partner cause it? The answers overlap, so one charge can be all three. Ask about validity first, then log each answer by code.
Why ask three questions instead of sorting into fixed types?
Disputable, preventable and relayable aren't separate bins. Each label answers a different question about the same charge.
Use the answers to choose what to do first.
Say a 3PL mislabels a carton (hypothetical). The retailer's label rule may make the charge valid, your template may have made it preventable, and the 3PL may be answerable.
Validity goes first, because preventable and partner-caused both describe a valid charge. The retail compliance FAQ and our post on deciding what to do with a deduction cover the same idea.
| Question | What it asks | Read next |
|---|---|---|
| Is the charge valid? | Do your own records confirm the retailer's claim, or contradict it? | How to dispute a retailer deduction |
| Could we have prevented it? | Does the condition behind a valid charge sit inside your own operation? | Reason codes and the retailer guides |
| Did a partner cause it? | Is the failure behind a valid charge a carrier's, a 3PL's or a forwarder's? | Relaying charges to carriers and 3PLs |
Is the charge valid?
A charge is valid when your own records confirm the retailer's claim. It's disputable when they contradict it.
A code is disputable when a named document proves the claim wrong, not when the same evidence confirms it. A valid charge gets closed, not pursued. The open question then becomes its root cause.
Rule out terms first. Allowances, agreed markdowns and co-op advertising are money you agreed to give up, so you neither dispute nor write them off. See allowance and markdown deductions.
A deduction shows up as a short-pay line with a reason code on the remittance, not as a bill. Read the code against the retailer's guide and window. Windows and start events differ by retailer.
| Type | What it is | Does a dispute apply? |
|---|---|---|
| Dilution | Allowances, agreed markdowns, co-op advertising and contract terms | No. These are terms, not disputes. |
| Valid chargeback | A claim the retailer may make, confirmed by your own evidence | No. Close it and find the root cause. |
| Disputable chargeback | A claim a specific document contradicts | Yes. Check the retailer's window first. |
For the steps, see the dispute guide and the proof documentation checklist.
Could your own operation have prevented it?
A valid charge is preventable when the condition behind it sits inside your own operation. Compare the retailer's rule with how you pack, label and transmit.
The retailer's own documents define each code, so start with the guide the code cites. Then check the first record in the table.
| If the code points to | Look first at | Read |
|---|---|---|
| Carton marking, labels or ticketing | Your label template and packing station against the retailer's guide | Packing and labeling chargebacks |
| An ASN or other EDI document | Your EDI transmission log and the 997 acknowledgment against what shipped | EDI compliance chargebacks |
| Late or incomplete delivery (OTIF) | Ship date, appointment and delivery records against the retailer's window | OTIF fines |
| A price difference | The purchase order cost against the invoice cost | Pricing deductions |
Give each retailer's guide an owner, and re-read it when the retailer revises it. Then ask whether the same charge would return if nothing changed.
Did a partner cause it?
A charge can be valid against you and still be a partner's failure: a carrier's, a 3PL's or a freight forwarder's.
The retailer deducts from your payment, so recovery from a partner is a separate claim you file afterwards. A carrier claim has its own filing and response deadlines.
A third party may hold some of the proof, and may itself be liable.
Gather these before you ask a partner:
- The retailer's deduction notice.
- The records that name who failed, such as the bill of lading and proof of delivery with exceptions noted.
- Your agreement with the partner, to see whether it lets you recover the cost.
For more, see relaying charges to carriers and 3PLs, carrier freight claims and hard-to-prove chargebacks.
What should you record for each deduction?
Record the answer to each question next to the retailer's code, so a pattern shows before the same charge returns.
Log these fields for each deduction:
- The retailer and its code.
- Valid or not, and what record shows it.
- Preventable or not, and the condition behind it.
- Partner involved or not, and who.
- Status.
The key decision is whether closing a deduction means agreeing to keep paying the same claim next month. The write-off guide covers that call.
Add the three answers as columns beside the reason category and status fields in the deduction reporting guide.
Want to see how deductions get matched to retailer rules? Book a demo, or get an assessment.