Does your Ecommerce sell in LATAM? Here's how chargebacks vary by country (and how to prepare)

Running an ecommerce business in Latin America? Learn how chargebacks vary across countries like Mexico, Colombia, Argentina, and more, plus the best strategies to reduce risk. Selling in Latin America offers huge opportunities, but also significant challenges. One of the biggest pain points for ecommerce businesses in the region is chargebacks (also known as disputes or forced refunds). But did you know that the cause, frequency, and resolution of chargebacks vary widely by country? From local regulations to consumer behavior, each LATAM market has its own unique dynamics. In this article, we break down how chargebacks work in key Latin American countries and what you can do to protect your ecommerce business in each one.What are chargebacks and why are they a bigger issue in LATAM? A chargeback is a forced refund initiated by a customer through their bank. In Latin America, chargebacks are more frequent than in other regions, largely due to: - High rates of digital fraud - Low consumer financial literacy - Structural issues in logistics - Inefficient banking dispute processesChargeback landscape by country Mexico - High fraud rate, especially with card-not-present transactions - Many customers file chargebacks even after receiving their orders - Some local banks don’t thoroughly investigate disputes Recommendation: - Use 3D Secure 2.0 as a requirement - Prioritize delivery partners that offer signature and photo proof Colombia - Common issues with inaccurate addresses or hard-to-reach delivery zones - High number of disputes due to “non-delivery” claims Recommendation: - Verify address data during checkout - Enable active post-purchase communication via WhatsApp and email Argentina - Logistics delays are the top reason for chargebacks - Currency controls complicate international refunds Recommendation: - Partner with reliable, local logistics providers - Clearly state delivery times and refund policies Chile - Strong consumer protection laws (e.g., SERNAC) - Well-informed and demanding shoppers Recommendation: - Offer transparent and visible policies on your site - Provide fast, proactive customer support Peru - Card fraud is rising, especially with new ecommerce stores - Connectivity issues create delivery frustrations and disputes Recommendation: - Automate order status notifications - Use two-factor authentication at checkoutRegional challenges across LATAM Some common factors increase chargeback risk throughout Latin America: - Unreliable logistics infrastructure - Heavy mobile usage (harder to verify customer identity) - Banks tend to favor consumers over merchantsKey Strategies to Reduce Chargebacks in LATAM - Use local + global payment gateways Examples: MercadoPago, Kushki, Conekta, Adyen - Strengthen post-sale customer support Automate follow-up messages by country and local timezone- Offer clear yet flexible policies Make terms visible, translated, and adapted to local laws if needed - Track chargebacks by country risk level Monitor your dispute rates per country and adjust security measures accordinglyFinal thoughts Latin America is a growing ecommerce market, but success requires local know-how. Chargebacks are part of the game, but with the right strategies, you can prevent them, manage them, and protect your bottom line. Adapt your ecommerce approach to each country, respect its unique landscape, and you'll not only reduce chargebacks, you’ll grow a stronger business across the region.