E-commerce · Evidence
Refund and chargeback evidence
Published · Reviewed by The Diligence Standard Team · Updated
Refunds, returns, disputes and processor reserves must be aligned to the sales periods that created them.
Records to reconcile
- Refund and dispute exports
- Return merchandise records
- Reserve notices and balance history
Warning signal
Recent sales rise while delayed refunds, disputes or reserves remain outside the earnings period.
Transaction impact
Trailing profit and available cash may be temporarily inflated.
Response
Apply cohort-based loss rates and allocate pre-close exposure in the transaction documents.