Appliances and gadgetsHow an E-Commerce Brand Slashed Its Chargeback Rate by 69% in 12 Months
NAOS CX deployed a dedicated risk management team — cutting dispute rate from 2.97% to 0.92% and protecting nearly $1M in annual revenue while the business scaled +63%.
Industry: Appliances and gadgets + subscription to warranty MARKET: USA, Canada, Australia & UK Timeline: 12 months (01/2025 to 01/2026)
Industry: Appliances and gadgets + subscription to warranty MARKET: USA, Canada, Australia & UK Timeline: 12 months (01/2025 to 01/2026)
-0123456789001234567890%
DISPUTE RATE
From 2.97% to 0.92%
~01234567890.01234567890K
DISPUTES AVOIDED YoY
~$01234567890M
REVENUE PROTECTED
0123456789001234567890%
CHARGEBACK DISPUTES WON
Client Profile
- Industry: Appliances and gadgets
- Business Model: DTC Subscription (Recurring Billing)
- Market: USA, Canada, Australia & UK
- Revenue Scale: $2.5M–$4M/month
- Payment Processors: Adyen, Maveric, PayPal, Stripe
The Challenge
The client came to NAOS CX with a chargeback problem that was threatening their ability to keep processing payments:
- Chargeback rate of 2.97%, more than 3× the standard processor threshold, putting the merchant account at risk of termination.
- Only 10% of contested chargebacks were being won.
- No structured process to intercept risky orders before fulfillment: the most preventable chargebacks were going unchallenged.
- Slow, reactive responses. Evidence was submitted manually and inconsistently, leading to missing windows and lost winnable cases.
- Escalating financial exposure: each chargeback triggered a non-refundable processing fee, in addition to a fine and the full order refund for every lost case.
E-COMMERCE SERVICES
Our Approach
A lean 4-agent Risk Management Team — operating on half-shifts for maximum coverage — was deployed with a dual mandate: prevent chargebacks from being filed in the first place, and win a far higher share of those that are.
THE RESULTS
After 90 days with
NAOS CX
By shifting from reactive management to proactive prevention, the brand achieved significant improvements in both risk metrics and top-line growth.
| Metric | Baseline (Jan 2025) | Result (Jan 2026) | Change |
|---|---|---|---|
| Monthly Order Volume | 20,800 | 34,037 | +64% |
| Monthly Revenue | $2.47M | $4.03M | +63% |
| Total Disputes | 617 | 313 | -49% |
| Chargeback/Dispute Rate | 2.97% | 0.92% | -69% |
| Chargeback/Disputes win rate | 10% | 30% | +300% |
| Average Order Value | $118.6 | $118.4 | Stable |
69% reduction in dispute rate 3,650 disputes prevented yearly ~$440K of direct costs avoided in one year +additional ~$885K of indirect costs saved DIRECT CHARGEBACK COSTS = lost transactions + chargeback fees INDIRECT COSTS = operational overhead, COGS, processor penalty, lost CAC, opportunity cost
” NAOS CX transformed our dispute management from reactive firefighting into a proactive prevention system. Their team didn’t just reduce our chargeback rate — they protected our merchant account and enabled us to scale confidently.”
—Head of Operations/Risk Management — E-Commerce
Brand (USA) — anonymized
NAOS CX helped us unlock revenue we didn’t even realize was sitting inside our support calls. And they did it without compromising customer experience.
Head of CX — DTC Apparel Brand (USA) — anonymized
CONCLUSION
What This Means
for Your Brand
Prevention beats reaction every time
The cheapest chargeback is the one that is never filed. Intercepting risky orders before fulfillment — through automated Shopify holds and manual verification calls — eliminates the most unwinnable case types before they ever reach a processor.
Representation is a skill, not a task
Going from a 10% to a 30% win rate did not require more people. It required structured evidence packages, processor-specific protocols, and consistent submission speed. The cases were always there to be won.
Scale without scaling your risk
Revenue grew +63% while chargebacks actually paid fell -61%. With the right operational framework, growth does not automatically mean higher chargeback exposure.
Small team, structural impact
4 agents working half-shifts generated ~$440K in avoided direct chargeback costs annually. The ROI is not linear — it is systemic. And it protects the merchant account that makes all other growth possible.
CONTACT NAOS CX
Ready to slash your chargeback rates and secure your merchant account?
Book a free 30-minute CX audit and we’ll map your inbound upsell potential.
CONTACT NAOS CX
Ready to slash your chargeback rates and secure your merchant account?
Book a free 30-minute CX audit and we’ll map your inbound upsell potential.
