Reduce EDI Chargebacks
Catch compliance errors before they become $500+ chargeback penalties
EDI chargebacks are financial penalties that retailers impose when suppliers fail to meet compliance requirements. A missing ASN costs $500. An incorrect SSCC-18 barcode costs $500 per carton. An OTIF failure at Walmart costs 3% of COGS. For a mid-size supplier, chargebacks can total $50,000-$200,000 per year, and most of them are preventable.
Why Chargebacks Keep Happening
Most chargebacks aren't caused by operational failures. They're caused by data errors in EDI documents. A missing segment in an ASN. A PO acknowledgment sent 25 hours after receipt instead of the required 24. An invoice amount that doesn't match the PO because someone keyed the wrong price. These are fixable problems, but only if you catch them before the documents leave your system.
Common Chargeback Triggers by Retailer
Walmart penalizes late ASNs ($500+), missing SSCC-18 barcodes ($500/carton), and OTIF failures (3% of COGS). Target charges $250-$500 for non-compliant ASNs and $500-$2,000 for routing guide violations. Kroger penalizes missing lot tracking data on perishables. Each retailer has specific rules, and the rules change. What worked last quarter might trigger a chargeback this quarter.
How OrderSync Prevents Chargebacks
OrderSync validates every outbound EDI document against retailer-specific compliance rules before transmission. ASNs are checked for required segments, timing, and barcode data. Invoices are validated against the original PO for quantity and price matching. PO acknowledgments are sent within the required window automatically. When validation catches an error, it flags it for review instead of sending a non-compliant document. Prevention costs nothing; chargebacks cost thousands.
How OrderSync Solves This
Industries Affected
This challenge is particularly common in these industries:
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Frequently Asked Questions
How do I dispute an EDI chargeback with a retailer?
Most retailers require you to submit a chargeback dispute within 30 days with supporting documentation (proof of delivery, compliant ASN copies, or OTIF evidence). Success rates on disputes are low, typically under 30%, which is why prevention is far more cost-effective than disputing after the fact.
What is the most common reason for EDI chargebacks?
Late or missing Advance Ship Notices (ASNs) are the single most common chargeback trigger, followed by incorrect SSCC-18 barcodes and invoice-to-PO price mismatches. Over 70% of these are caused by data entry errors or timing issues that automated validation can prevent.
How much do EDI chargebacks cost per year?
Mid-size suppliers typically lose $50,000-$200,000 per year to EDI chargebacks across their retail accounts. Individual penalties range from $250 to $5,000 per violation, and Walmart's OTIF penalties alone can reach 3% of the cost of goods sold.