New to EDI?  Never heard of a chargeback until the deduction was noted on the payment?  Not uncommon, many organizations don’t know about costly chargebacks until the deductions are made.  For most companies, this can be the difference between profitability on an order or an account, so being aware in real-time of pending issues is important.

Chargebacks and deductions are common place in B2B programs; the main driver is that your customers accrue expenses due to late ASN’s. Manual reconciliation issues due to data quality and item substitutions can impact sales and production cycles.  The good news is that with a firm understanding of the rules and systems in place to help you identify potential risk items, you can often recover before you impact your revenue stream.

The key part of being able to address chargebacks is knowing when the rules change and when items outside of your control may impact a fulfillment cycle.  Visibility is a key requirement to ensuring compliance to your partner’s business requirements and being able to answer questions inside your organization about why deductions are occurring.