Chargeback write-off

Chargeback write-off is a business decision to accept a chargeback loss without contesting it through representment. It is typically made when the dispute amount is low relative to operational costs, evidence is clearly insufficient to win, the reason code has very low win rates, or the time and resources required to contest exceed potential recovery. 

Writing off chargebacks is a strategic decision that considers representment fees (typically $15-$50), staff time costs, probability of success based on available evidence, and whether the chargeback still counts toward the merchant's ratio regardless of outcome.

While write-offs reduce immediate operational expenses, patterns in write-off decisions should be analyzed to identify underlying issues with fraud prevention, customer communication, or fulfillment quality.