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Seller Resources · Chargebacks
How chargebacks work on LTC
When a buyer disputes a charge with their bank instead of working it out with you directly, you have a chance to fight back — if you act fast. Here's everything you need to know.
Time to respond
7–21 days
Cost if payout still held
$18.57
Cost if already paid out
$112.61
Disputed payout returned if you win
$92.20
Submit Evidence
On the Order PagePer-order, before the deadline
Bank Decision Time
30–75 daysAfter evidence is submitted
Cost depends on timing
$18.57 or $112.61Whether your payout already left
Marketplace Fee
Absorbed by LTCNot charged again on chargeback
Jump to a section
1
The basics
What is a chargeback?
When a buyer sees a transaction on their bank statement they don't recognize, didn't authorize, or believe wasn't fulfilled correctly, they can call their bank and dispute it. The bank reverses the charge while it investigates. That reversed charge is called a chargeback.
Chargebacks are different from refunds. With a refund, the seller and buyer agree to undo the sale. With a chargeback, the buyer skipped you entirely and went straight to their bank. The bank acts as the judge, and you have a limited window to submit evidence through the order page on LTC.
Common reasons buyers file chargebacks
Fraudulent transaction (card was stolen), product not received, product not as described, duplicate
charge, or general dissatisfaction. Some buyers also abuse chargebacks as a way to get free product
— this is called friendly fraud.
2
The math
What gets pulled from your account
When a chargeback opens, how much LTC pulls from you depends on where your payout was at that moment. There are two scenarios, both shown below for a $100 sale (your payout on a $100 sale is $92.20 after the marketplace and processing fees taken at sale time).
Scenario A — Your payout was still held (Payout Intercept)
If your payout for this order hadn't been released yet, LTC simply freezes it via a Stripe transfer reversal — that costs nothing and is restored if you win. Only the fees are debited from you.
| Line item | Rate | Amount |
|---|---|---|
| Payout Frozen via Transfer ReversalRestored if you win Your pending payout is reversed back to LTC. A wash — you hadn't received it yet. | — | $92.20 |
| LTC Chargeback FeeNon-refundable A flat fee LTC charges to process a chargeback. Kept whether you win or lose. | $15 | −$15.00 |
| Payment Processing LossMostly non-refundable Reimburses LTC for the processing cost (2.9% + $0.30). Only the 0.4% gap is refundable on a win. | 2.9% + $0.30 | −$3.20 |
| Chargeback Recovery FeeNon-refundable 2% of the amount actually debited from you ($18.20 base here). Never refunded. | 2% | −$0.37 |
| Total Pulled From You | — | −$18.57 |
Scenario B — Your payout was already paid out (Bank Debit)
If your payout had already been sent to your bank, there's nothing to freeze — so LTC recovers the full amount via an Account Debit, and the 2% recovery fee applies to that full amount.
| Line item | Rate | Amount |
|---|---|---|
| Seller Payout RecoveredReturned if you win Your $92.20 payout is debited back since it already reached your bank. | — | −$92.20 |
| LTC Chargeback FeeNon-refundable A flat fee LTC charges to process a chargeback. Kept whether you win or lose. | $15 | −$15.00 |
| Payment Processing LossMostly non-refundable Reimburses LTC for the processing cost (2.9% + $0.30). Only the 0.4% gap is refundable on a win. | 2.9% + $0.30 | −$3.20 |
| Chargeback Recovery FeeNon-refundable 2% of the full amount debited from you ($110.40 base here). Never refunded. | 2% | −$2.21 |
| Total Pulled From You | — | −$112.61 |
About the marketplace fee
The 5% marketplace fee LTC originally collected at sale time is absorbed by LTC and used toward the
buyer's refund. You don't pay this fee again on a chargeback.
3
Two paths
What happens when the dispute closes
The buyer's bank reviews the evidence from both sides and decides. The dispute can resolve one of two ways:
✓ You win
Dispute decided in your favor
+$92.60 (no evidence)
You get your disputed payout back ($92.20 on a $100 sale) plus the 0.4% processing gap ($0.40). If you submitted evidence, you also get the $15 evidence fee back (+$15.40 total fee refund).
Never returned: the $15 chargeback fee, the 2% recovery fee, and the 2.5% + $0.30 baseline processing. Those cover LTC's non-refundable costs of handling the dispute — the same in both scenarios.
× You lose
Dispute decided in buyer's favor
−$18.57 or −$112.61
The amount pulled from you stays. If your payout was still held (Scenario A) you're out $18.57; if it had already been paid out (Scenario B) you're out $112.61 — which includes the $92.20 sale itself.
In both cases the disputed money goes to the buyer's bank and LTC keeps the chargeback fees. The net hit to your account is the same either way once you account for the payout you'd otherwise have kept.
4
Your move
How to fight a chargeback
Your best defense is good documentation. The more evidence you can provide about the sale, shipping, and buyer communication, the better your chances of winning.
-
Respond quickly.
Check the dispute deadline on the order page. Missing it means automatic loss.
-
Gather proof of fulfillment.
Tracking number, delivery confirmation, photos of the item packed, and any communication with the buyer.
-
Document the buyer's behavior.
Save messages, reviews, and any signs the buyer received what they ordered. If the dispute reason is "product not received" and you have a delivery confirmation, that's strong evidence.
-
Submit evidence on the order page.
Open the order with the chargeback, attach your evidence (photos, tracking, messages), and submit before the deadline. LTC forwards your evidence to the buyer's bank.
-
Wait for the decision.
Banks typically take 30–75 days to decide. You'll be notified when the dispute closes.
5
Stay ahead
How to prevent chargebacks
Most chargebacks come from buyer confusion, not fraud. A few simple practices dramatically reduce your risk.
✓
Accurate listings
Match photos and condition descriptions exactly. Note any flaws clearly. Buyers who expect one thing and get another are prime chargeback risk.
📦
Ship with tracking
Always use tracking. "Product not received" is the most-disputed reason, and a tracking number with delivery confirmation defeats it almost every time.
💬
Communicate proactively
Reply to messages quickly and on-platform. If a buyer reaches out about an issue, work it out before they go to their bank.
🎥
Film your packing
Some sellers film themselves packing high-value cards. It's the gold standard of evidence for "wrong item" or "not as described" disputes.
6
Common questions
Frequently asked questions
Why was my account debited before the dispute was decided?
When a buyer disputes a charge, the money is immediately pulled to fund the buyer's reversal while
the bank investigates. LTC passes that debit through to you to keep your balance accurate. If you
win, your disputed payout comes back (plus the small 0.4% processing gap, and the $15 evidence fee
if you submitted evidence); the $15 chargeback fee and the recovery fee are non-refundable. If you
lose, the money has already left.
What is the chargeback recovery fee for?
When a chargeback opens, LTC charges a 2% recovery fee on the amount actually debited from you to
recover the chargeback. It covers Stripe's Account Debit cost plus a small LTC margin. This fee is
non-refundable — it is not returned even if you win the dispute.
What if my balance is too low to cover the debit?
The remaining amount will be pulled from the bank account linked to your seller payouts. If you've
recently been paid out, the debit can result in a negative balance that pulls from your bank.
Can I appeal a lost chargeback?
In some cases, yes. Banks allow a second-level review called arbitration, but it's
expensive and the success rate is low. Reach out to LTC support if you have new evidence that
wasn't available the first time.
Will chargebacks affect my seller tier?
High chargeback rates can affect your seller tier and selling limits. A pattern of disputes —
especially lost disputes — signals risk to LTC and may result in lower payout caps or longer
hold periods.
Where do I submit my evidence?
Open the order with the chargeback from your Orders page. There's a dedicated evidence section on
the order where you can attach tracking, photos, messages, and any other documentation. Submit it
before the deadline shown on the order.
Still have questions?
If something isn't covered here, the LTC support team is happy to help.
Contact LTC support