What Is an EDI Chargeback Transaction?
An EDI chargeback transaction is not a standard EDI document like a PO or Invoice.
It is a financial penalty imposed by a retailer on a supplier when EDI or logistics rules are violated.
Retailers usually deduct this amount directly from the supplier’s payment and communicate it through EDI documents or retailer portals.
Why Do EDI Chargebacks Happen?
Chargebacks happen when a supplier fails to meet retailer EDI compliance requirements, such as:
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Late or missing ASN
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Incorrect ASN quantity or carton data
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Invalid item numbers (SKU, GTIN, FNSKU)
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Late or incorrect invoice
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Incorrect ship-to / GLN / store number
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Labeling or packaging mismatch
There is no universal EDI “Chargeback” document, but retailers communicate chargebacks using different EDI transactions.
Common EDI Documents Used for Chargebacks
1. EDI 810 – Invoice Deduction
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Retailer deducts chargeback amount from invoice payment
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Seen as a short-paid invoice
2. EDI 812 – Credit/Debit Adjustment
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Explicit document showing:
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Chargeback reason
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Deducted amount
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Example reasons:
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Late ASN
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Routing non-compliance
3. EDI 864 – Text Message
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Used to explain the chargeback in detail
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Often includes free-text reason codes
4. EDI 824 – Application Advice
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Sent when an EDI document is rejected
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Not a chargeback itself, but often leads to one
5. EDI 997 / 999 – Functional Acknowledgment
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Confirms whether a document was accepted or rejected
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Rejection and no fix = chargeback later
Chargeback Flow (Example)
- Supplier sends ASN (856)
- Retailer detects ASN quantity mismatch
- Shipment accepted, but violation logged
- Retailer issues chargeback
- Deduction appears in 810 payment or 812 debit memo
