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What a chargeback is, and how to avoid one at your stall

By The Venda Wallet team · Written October 25, 2026 · Updated October 25, 2026

What a chargeback is

A buyer who doesn't recognize a charge, or says they didn't get what they paid for, can dispute it with their card company. If the card company sides with the buyer, the money is taken back from the seller. That's a chargeback.

How long buyers have

For credit cards, the buyer has to send a billing error notice within 60 days after the charge appeared on their statement [1]. So a sale from early in the season can come back weeks later.

What it costs you

You lose the sale amount, and you've already handed over the goods. Some processors add a fee.

  • PayPal: $20 per chargeback [2]
  • Square: no fee for chargebacks and dispute management [3]

How to keep them rare

  • Use your business name on card statements, so buyers recognize the charge.
  • Offer a receipt for every sale.
  • Make refunds easy. A buyer who can get a refund from you doesn't need their bank.
  • Tap or dip cards rather than typing numbers in.

Payments that aren't cards

Cash and bank payments don't have card chargebacks. With Venda Wallet, regulars prepay by Zelle® to your business bank, and every charge at the stall is recorded with a receipt. Charges over $25.00 need the buyer's OK on their phone first.

Questions

What's the difference between a refund and a chargeback?

You give a refund yourself. A chargeback is forced by the buyer's card company after a dispute, and may come with a fee.

How long can a customer dispute a credit card charge?

Under the Fair Credit Billing Act, a billing error notice is due within 60 days after the charge appeared on the statement.

Do bank payments have chargebacks?

Not card chargebacks. Payments to an enrolled business generally can't be canceled, so buyers should prepay only vendors they trust.

Sources

  1. Consumer Financial Protection Bureau: How do I dispute a charge on my credit card bill?, read October 25, 2026
  2. PayPal: Business fees (Zettle card present rate and chargeback fee), read October 25, 2026
  3. Square: What are Square's fees, read October 25, 2026

Cite this page: "What a chargeback is, and how to avoid one at your stall." Venda Wallet, October 25, 2026. https://vendawallet.com/guides/chargebacks-at-a-market-stall

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