Tags: Glossary

A fee charged by a customer to a supplier for any discrepancies with a shipment or product.

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Al Sharqi Shipping is a leader in the logistics industry with more than 30 years of experience in guiding and moving freight across the globe.

What is a Chargeback?

Chargeback in shipping refers to the reversal of payment made by a customer to a shipping company, often due to a dispute or an error in billing. Chargebacks can occur in different situations, such as when the customer claims that the service was not provided as expected, or when there is a billing error or unauthorized charge. 


The calculation of chargebacks in shipping can vary depending on the terms of the service agreement and the specific circumstances of the dispute. Generally, chargebacks are calculated as the amount of the original transaction that is being disputed by the customer. For example, if a customer disputes a charge of $100 for shipping services, the chargeback amount would also be $100. 

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