Minimizing Chargebacks: Documentation & Packaging Best Practices

Chargebacks cost coin dealers thousands yearly. Smart documentation and packaging cut disputes by 80%.

Whether you’re shipping your first Morgan dollar or managing daily orders, this guide shows you how to protect every transaction. You’ll learn exactly what to document, how to package high-value items, and which evidence wins disputes when customers file chargebacks.

Why Coin Dealers Face More Chargebacks Than Pizza Shops

You sell a 1921 Morgan dollar for $500. Three months later, your payment processor hits you with a chargeback notice. The customer claims they never received it. Sound familiar?

Coin dealers face triple the chargeback rates of regular retailers. Why? Start with the obvious—you’re shipping small, valuable items that scream “steal me” to porch pirates. Add skeptical buyers who can’t touch the merchandise before purchasing. Mix in the occasional scammer who knows disputing a coin purchase often works.

But here’s what really stings. When you lose a chargeback, you lose more than the coin. You eat the shipping costs. The processing fees. Sometimes a $25 penalty just for having the dispute filed. Rack up too many chargebacks and payment processors label you high-risk. Your rates jump. Or worse—they drop you entirely.

The good news? Most chargebacks aren’t sophisticated fraud schemes. They’re misunderstandings you can prevent with proper documentation and packaging. Let’s start with the paperwork that saves your bacon.

Document Like a Detective, Not a Dealer

The Paper Trail That Actually Matters

Forget what you think you know about documentation. Saving every email won’t win disputes. Neither will screenshots of your perfect feedback score. Processors want specific evidence that proves two things: the customer authorized the transaction, and you delivered what they bought.

Start documenting before you even list the coin. Photograph every angle—obverse, reverse, edge, and any notable features. Include a timestamp app or today’s newspaper in frame. These photos become your baseline truth when customers claim the coin arrived different than described.

Next, capture the order details. Screenshot the checkout page showing the customer’s billing address, shipping address, and what they purchased. If addresses don’t match, that’s your cue to dig deeper. Mismatched addresses account for 30% of successful fraud attempts.

Communication Records That Win Disputes

Stop deleting customer emails after shipping. Every interaction creates evidence. But raw emails won’t help unless you organize them properly.

Create a simple folder system:

1. Pre-purchase questions (condition clarifications, additional photos)
2. Order confirmations (payment received, shipping timeline)
3. Shipping notifications (tracking number, expected delivery)
4. Post-delivery follow-ups (satisfaction check, delivery confirmation)

When disputes arise, this organized trail proves you communicated clearly throughout the transaction. A dealer can reduce chargebacks 40% just by sending automated “your package shipped” emails with tracking links.

The Magic Words That Prevent Disputes

Your billing descriptor might be sabotaging you. When customers see “XYZ CORP 8827” on their statement instead of “Mike’s Coin Shop,” they panic. They don’t remember authorizing that charge. Chargeback filed.

Contact your payment processor today. Change your billing descriptor to match your business name. Add your phone number if space allows. This simple fix prevents the “unrecognized charge” disputes that plague online sellers.

Speaking of recognition, let’s talk about making your packages unmistakably yours.

Package Like You’re Shipping Fabergé Eggs

Materials That Protect More Than Coins

Your packaging serves three purposes: protecting coins, deterring tampering, and creating evidence. Standard bubble mailers handle none of these well.

Start with rigid mailers or small boxes. Yes, they cost more. But one damaged coin costs more than 100 upgraded packages. Line the inside with bubble wrap or foam inserts. Coins should not move when you shake the package.

For individual coins, use these holders in order of preference:

1. Hard plastic flips (non-PVC)
2. Cardboard 2×2 holders with mylar windows
3. Soft flips as last resort (double bag them)
4. Never loose in envelopes

The Tamper-Evident Advantage

Here’s what separates amateur sellers from professionals: tamper-evident packaging. When customers claim coins were swapped or stolen, your packaging becomes star witness.

Start simple. Use security tape that shows “VOID” when removed. Photograph how you seal packages. For high-value shipments, use serialized security seals. Write the seal number on the packing slip. Photograph the sealed package with the shipping label visible.

One dealer started using $2 security seals on every package over $100. Her chargeback rate dropped 60%. Why? Honest customers appreciate the security. Scammers move on to easier targets.

Shipping Methods That Provide Evidence

Regular first-class mail with tracking seems sufficient. Until a customer claims non-delivery and you realize tracking only proves you shipped something somewhere.

For orders over $100, use these shipping methods:

1. USPS Priority Mail (includes $100 insurance)
2. UPS/FedEx with signature required (proves delivery to person)
3. Registered Mail for extremely valuable items (chain of custody)
4. Never use stamps or drop in mailbox (no scan proof)

Document the shipping process itself. Photograph packages at the post office counter. Save receipts showing weight and service selected. These details matter when customers claim you shipped empty boxes.

Now let’s put it all together in a system.

The 12-Step Chargeback Prevention Checklist

Print this list. Tape it to your packing station. Follow it religiously and watch chargebacks plummet.

1. Verify billing/shipping address match – Flag any discrepancies for manual review. Call customers when addresses differ significantly.
2. Require CVV and implement AVS – Basic fraud prevention that stops stolen card usage. Enable both in your payment settings today.
3. Document coin condition with timestamped photos – Use apps like TimeStamp Camera. Include ruler for scale. Capture any flaws clearly.
4. Send order confirmation with clear billing descriptor – “Your order from Mike’s Coin Shop will appear as MIKES COINS on your statement”
5. Use tamper-evident packaging with serial numbers – Document seal numbers on packing slips. Photograph sealed packages.
6. Record packing process (video for high-value items) – Phone on tripod. Show coin going into holder, holder into package, sealing process.
7. Choose appropriate shipping method with tracking – Match shipping security to item value. Always get receipt scans.
8. Require signature for orders over $750 – Yes, it annoys some customers. Chargebacks annoy you more.
9. Send shipping confirmation with tracking details – Include expected delivery date and carrier contact info.
10. Document delivery confirmation – Screenshot tracking showing delivered status. Save any delivery photos.
11. Follow up post-delivery for high-value orders – Simple “Did your package arrive safely?” email within 48 hours.
12. Archive all documentation for 18 months – Organize by order number. Back up to cloud storage monthly.

This system seems like overkill until your first successful dispute wins. Then it feels like freedom.

Documentation Disasters and How to Fix Them

Mistake 1: Generic Billing Descriptors

The customer sees “PAYMENT PROC 7743” on their statement. Instant panic. Chargeback filed.

Fix: Contact your processor today. Change the descriptor to match your actual business name. Include a phone number if possible.

Mistake 2: No Pre-Shipment Photos

Customer claims you sent an AU-58 instead of the MS-63 they bought. You have no proof of what you actually shipped.

Fix: Photograph every coin immediately before packaging. Include order number in frame. Upload to cloud storage before shipping.

Mistake 3: Accepting Mismatched Addresses

Shipping to addresses different from billing triggers fraud alerts. Ignoring these warnings invites chargebacks.

Fix: Create verification protocol. Email customers to confirm shipping address. Ask why addresses differ. Document their response.

Mistake 4: Using Regular Mail for Valuable Coins

That $300 gold coin you sent with a stamp? Zero proof of delivery when disputes arise.

Fix: Set value thresholds. Under $50: First Class with tracking. Over $100: Priority Mail. Over $500: Signature required. Over $1000: Registered Mail.

Mistake 5: Discarding Packaging Records

Customer claims tampered package three months later. You deleted all evidence after delivery confirmation.

Fix: Create digital archive system. Scan receipts. Save photos. Organize by date and order number. Set calendar reminder to backup monthly.

Evidence That Processors Actually Care About

Not all evidence carries equal weight. Here’s what actually moves the needle during disputes:

The Evidence Hierarchy

Think of dispute evidence like a courtroom. Some witnesses matter more than others.

Top tier evidence (usually wins):

1. Signed delivery receipts with customer name
2. Video of packing process for exact item
3. Written acknowledgment of receipt from customer

Middle tier evidence (helps your case):

1. Tracking showing delivered status
2. Photos of item before shipping
3. Email communications about order
4. AVS and CVV matches

Lower tier evidence (better than nothing):

1. General business policies
2. Customer purchase history
3. Feedback or reviews

Building Your Evidence Package

When disputes arrive, you typically have 5-10 days to respond. Scrambling to find evidence wastes precious time. Instead, create template responses for common dispute types.

Your response package should tell a story. Start with order placement (customer clearly wanted this item). Show authorization (AVS/CVV matches prove legitimate card use). Document fulfillment (photos, packing video). Prove delivery (tracking, signature). End with follow-up (customer satisfaction email).

Your Chargeback Questions Answered

Q: How long should I keep transaction documentation?

A: Keep everything for 18 months minimum. Chargebacks can occur up to 6 months after purchase, sometimes longer for certain card types. The extra year protects you from extended disputes and helps identify problem customers.

Q: What’s the most important evidence for “item not received” disputes?

A: Signature confirmation beats everything else. Tracking alone shows delivery to an address, not a person. For expensive items, spend the extra $3 for signature required. One saved chargeback pays for hundreds of signatures.

Q: Should I video record every package or just high-value shipments?

A: Set a threshold based on your average sale. Most dealers video anything over $500. For lower values, photos suffice. Remember: storage is cheap, chargebacks are expensive.

Q: Which shipping methods provide the best chargeback protection?

A: USPS Registered Mail offers the best chain-of-custody documentation but takes forever. For practical protection, use Priority Mail with signature confirmation. It balances security, speed, and cost.

Q: How do I handle international shipments to reduce chargeback risk?

A: International orders carry 3x higher chargeback risk. Require signature on everything. Use only trackable services. Consider requiring bank wire for orders over $1000. Document customs forms meticulously—photograph them attached to packages.

Your Next Steps to Chargeback-Proof Operations

You’ve learned the systems that protect profitable dealers from dispute disasters. Now it’s time to implement them. Start with these actions today:

Verify your seller account for enhanced protection tools. Most payment processors offer additional fraud screening and dispute management features. You just need to activate them. The setup takes 20 minutes but saves hours of future headaches.

Schedule a live show to build buyer trust. Customers who see you handling coins professionally file fewer disputes. They trust what they can see. Live selling also creates video evidence of exact items sold.

Download our complete packing guide with tamper-evident techniques. It includes supply sources, cost comparisons, and step-by-step instructions for different value levels. Professional packaging prevents problems before they start.

Use our listing template with built-in fraud prevention fields. It prompts you to collect the right information upfront. Address verification questions, shipping preferences, and acknowledgment checkboxes that strengthen your position in disputes.

The coin market rewards those who protect both parties in every transaction. Your documentation and packaging choices signal whether you’re a professional dealer or someone selling grandpa’s collection from the garage.

Smart dealers know that every avoided chargeback equals pure profit. That Morgan dollar sitting in your safe? Package it like it matters. Document like disputes are guaranteed. Because in today’s market, they practically are—unless you prepare properly.

Stop leaving money on the table through preventable chargebacks. Your business depends on keeping both coins and profits secure. These systems ensure both arrive safely at their destination.

Remember: The best chargeback is the one that never happens. But when disputes arrive, preparation beats panic every time.

Note: This guide provides educational information about coin collecting and market dynamics. It is not financial or investment advice. Coin values fluctuate, and past performance doesn’t guarantee future results. Always conduct your own research and consult with qualified professionals before making significant numismatic purchases or investments.