Skip to content

Item Not Received Coverage Policy

This should be read in conjunction with Signifyd’s Standard Claims Policy and Master Subscription Agreement between Subscriber and Signifyd, Inc., as amended (the “Agreement”) and Signifyd’s Fraud Protection Policy. This policy applies to all e-commerce transactions, as defined in the Agreement.

First published: July 15, 2019

As part of Signifyd’s Guaranteed Payments, Signifyd pays back eligible chargebacks received on guaranteed orders when the dispute is reported with one of the following reasons, as described in Signifyd’s Chargeback Reason Code Policy:

  • Item Not Received
  • Services Not Rendered

All claims will be processed within 7 business days according to standard delivery time frames. An eligible chargeback is paid out within 48 hours of claim approval which includes chargeback fees as long as the required documentation is provided as described in the Agreement.

If Signifyd approves an order but Subscriber later gets a chargeback, Signifyd will reimburse the cost of the order. This reimbursement amount is limited to the following transactions:

  • Order amount that was guaranteed where the chargeback occurred
  • Chargeback fees incurred due to the chargeback

For the avoidance of doubt, Signifyd coverage will be based on the following standard delivery timeframes:

  • US deliveries: 7 business days
  • Cross-border deliveries: 14 business days

This section summarizes Signifyd’s Item Not Received chargeback coverage policy and description of what is covered.

Claim Type Fulfillment Process Risk Use Case Coverage Requirements
Buyer Abuse Buyer abuse Friendly fraud Covered NA
Lost Package Lost package by carrier In transit loop (on the way to destination) Covered 7 days have passed since shipment.
Lost Package Lost package by carrier In transit loop (return to sender) Covered Claim filed with carrier. Update Signifyd on status - if carrier claim is approved, Signifyd will bill the Subscriber up to the amount covered by the carrier*
Lost Package Lost package by carrier In destination country, awaiting pickup at customs Covered Merchant's shipping policy should adequately address duties and taxes on international orders at the time of order.
Lost Package Lost package by carrier Customer error (wrong address) Covered 7 days have passed since shipment.
Lost Package Package stolen after delivery Porch theft Covered NA
Merchant error Error - unfulfilled by merchant Not covered NA
Merchant error Returned to Sender Customer error (wrong address) Not covered NA
Merchant error Returned to Sender Refused by recipient Not covered NA
Delayed Delivery Late package due to carrier Delivery delays (weather conditions, etc.) Covered 7 days have passed since shipment.
Delayed Delivery Late package due to fulfillment Flash sales, holiday event, special launches, etc. Covered 7 days have passed since shipment.

 

Item Not Received Chargebacks - Claim Processing Overview

Signifyd's Guaranteed Payments covers merchants against chargebacks associated with missing, lost or stolen delivered merchandise. If Signifyd approves an order but Subscriber later gets a chargeback, Signifyd will reimburse the cost of the order plus associated chargeback fees.

In order to be reimbursed for a chargeback, the following criteria must be met:

  1. The order was approved for Guarantee.
  2. The chargeback reason code must be for Item not received or Services not rendered. Refer to Signifyd’s Reason Code Policy attached as Exhibit A.
    • Valid chargeback documentation is submitted.
    • The chargeback reported corresponds to the order guaranteed.
  3. Proof of shipment is provided, in the form of a tracking number, corresponding to the guaranteed order showing the item was shipped to the shipping address on the guaranteed order.
    • The shipment date cannot be later than the chargeback notification date.
    • At least 7 business days has passed from shipment date for US deliveries and 14 business days for cross-border.
    • Copy of the signature of receipt is provided for any orders where total cost is over $1,000 USD.
    • The shipping method on the order is not BOPIS (Buy Online Pick Up In Store).
  4. The reimbursement request was submitted within 7 days of receiving the chargeback notice (this request can be provided via API integration, either directly or with the relevant payment processor).

When all the requirements are met and verified successfully, the claim is approved and a payment is sent to Subscriber’s payment method of choice for the order amount and chargeback fees, if any.

Merchandise Returned

If verifying a tracking number online confirms that the merchandise was returned to the sender, Signifyd will not reimburse the chargeback. The merchant has the duty to issue a refund immediately after a return in order to avoid any chargebacks. As such, any chargebacks resulting from this will not be covered by Signifyd.

However, there are instances when a chargeback has already occurred before a return is completed (i.e., return in progress based on online tracking information) and Subscriber will not have the opportunity to process a refund.

The merchant is required to file a claim with their carrier. After which, proof of this carrier claim is to be submitted with the required documents when filing a claim to Signifyd.

Signifyd will validate the shipment date and if 7 business days has passed, the claim will be approved. The merchant has the duty to update Signifyd on the status of their claim with the carrier. If the carrier ultimately approves their claim, Signifyd will bill the Subscriber up to the amount covered by the carrier. Any shipping costs associated with return of items will not be covered by Signifyd.

Exhibit A

Chargeback Reason Code Policy for INR Chargebacks

Signifyd’s Guaranteed Payments offers to help merchant subscribers protect against non-fraudulent activity for “Item Not Received” chargebacks on certain e-commerce transactions, as classified by the applicable card processor’s chargeback reason codes and categories specified below.

Note: Card processors may update their chargeback codes from time to time, which may not be fully reflected below. In case of code or category omission as reported by the card processor, Signifyd will determine in its sole discretion the eligibility of a submitted transaction for coverage under the Guaranteed Services.

Reason Codes and Categories

CARD NETWORK / GATEWAY CHARGEBACK CODE/REASON
Visa 13.1
MasterCard 55
American Express C08
Discover RG, 4755
Braintree Product not received
Stripe Product not received
PayPal Item not received (chargeback)
Shopify Product not received
Adyen Merchandise/Services Not Received