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Industry Report
Payment Holds and Chargebacks: How Proof Protects Your Cash Flow
Dec 22, 2024•5 min read
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When Payment Holds Threaten Your Business
Marketplace payment holds triggered by disputes can devastate cash flow. Yet most sellers don't understand how to prevent them or dispute them effectively.
How Payment Holds Work
When a customer disputes a transaction, marketplaces place a hold on your funds while investigating. A typical timeline:
- Day 1: Dispute filed → funds held immediately
- Day 1-7: You submit evidence
- Day 7-14: Marketplace reviews case
- Day 14-30: Resolution issued, funds released (or charged)
The Proof Advantage
Sellers with immediate proof (video, photos, signatures) resolve 78% of holds within 5 days. Sellers without proof average 25+ days. That's 20 days of working capital locked up.
Chargeback Defense Strategy
- Maintain timestamped delivery proof
- Keep communication records with buyer
- Document product condition at all stages
- File disputes immediately upon receiving chargeback notice
Projected Impact
Implementing proof documentation typically reduces payment hold duration by 70% and chargeback losses by 55%. For a ₹1 crore seller, this means ₹30-50 lakhs in freed working capital annually.
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TrustPack helps sellers capture, organize, and use proof to win disputes and prevent revenue loss.
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