Chargebacks & PayTrace: How to Win and Prevent Disputes

For Affiliates Using PayTrace on K-BID

Chargebacks can occur even when policies are followed correctly. This article explains how to respond to chargebacks in PayTrace, how to reduce your risk, and what K-BID will do in the event of a dispute.

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How to Fight a Chargeback with PayTrace

When a buyer initiates a dispute, PayTrace allows you to submit evidence to fight the chargeback. Your goal is to prove that the transaction was valid, the item was delivered, and the buyer’s claim is unfounded.

Step 1: Acknowledge and Respond Promptly

• Log in to PayTrace: Access your merchant account.

• Resolution Center: Locate the chargeback under the Resolution Center.

• Submit Documentation: Respond by the deadline listed—usually within a narrow window.

Step 2: Gather Strong Supporting Evidence

Tailor your evidence to the chargeback reason code. Your response should include the following:

• Transaction Evidence

  • Payment receipts

  • Authorization records (including IP address or device used, if available)

• Delivery Confirmation

  • Shipping label and tracking number

  • Delivery confirmation (signature, GPS scan, photo, etc.)

  • Must match the shipping address on the buyer’s invoice

• Terms and Conditions

  • Screenshot of K-BID’s Terms of Sale accepted during registration or bidding

  • Reference to “as-is” and “all sales final” policies

• Communication with the Buyer

  • Any emails or messages where the buyer requested shipping or confirmed delivery

If you need help retrieving data from K-BID (e.g., agreement acceptance or IP address logs), contact [e-mail] with the invoice and buyer information.

Step 3: Submit a Clear Rebuttal

• Present your documents in a single, clearly labeled PDF if possible.

• Include a professional explanation summarizing:

  • That the buyer placed a bid and agreed to the terms

  • That payment was completed

  • That the item was shipped and delivered as requested

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What K-BID Does in the Event of a Chargeback

If a chargeback is filed and the affiliate loses the dispute:

• Buyer's Premium Refund: K-BID will refund the buyer’s premium collected on that transaction.

• Invoice Status Update: The invoice will be marked as canceled and noted as a chargeback-related dispute.

• Permanent Ban on Bidders: Any bidder who initiates a chargeback will be permanently banned from K-BID, including any associated accounts or contact information.

These actions are taken to protect the integrity of the marketplace and reduce future fraud risk.

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Best Practices to Prevent Chargebacks

Avoiding a chargeback is always better than defending one. Follow these tips to protect yourself:

1. Use Verified, Trackable Shipping

• Use carriers with delivery confirmation.

• Require signatures or use delivery services that offer GPS/photo verification for high-value items.

2. Require Address Verification

• Always ship to the address listed on the buyer’s invoice.  

• If the buyer requests a new address:

  • Confirm in writing

  • Require additional documentation (e.g., utility bill or ID)

3. Use Certified Funds for Invoices Over $2,000

• Do not accept credit cards on high-dollar items.

• Require wire transfers, cashier’s checks, or cash for large transactions to prevent chargeback exposure.

4. Maintain Clear, Accurate Listings

• Include detailed item descriptions, multiple photos, and condition notes.

• Disclose any known issues and state clearly that items are sold “as-is, where-is.”

5. Save All Buyer Communications

• Archive messages where buyers request shipping, confirm delivery, or ask questions.

• These records are often crucial for dispute defense.

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Final Notes

Chargebacks are serious financial threats to affiliates. By following K-BID’s policies and submitting prompt, well-documented responses, you improve your chances of success.

If you need help or documentation, contact [e-mail] as soon as you are notified of a chargeback.