Chargeback Information

Chargeback Violations and Fees

Chargebacks/ Violation Reminders

• Merchandise must be prepared and shipped in accordance with the instructions in the Vendor Guidelines. Shipments not in conformance with these guidelines may be refused and returned at Vendor cost, or will be assessed a chargeback according to the above fee chart.
• Vendor chargebacks and/or warnings will be generated by the Compliance Team at the Distribution Center for all DC related violations. Chargebacks will also be issued for internal damage related to insufficient packaging and Vendor-related quality concerns. URBN will provide photographs or documentation when possible, along with comments detailing the reason for the violation. URBN may increase the amount of a chargeback in the event of a repeat violation.
• A notification of the warning or chargeback will be emailed to the vendor. For guidance in viewing Tradestone Chargebacks, please review the Vendor Chargeback Training Guide.
• Approved chargebacks will be deducted from the next invoice payment for Vendors shipping under Net Terms. Chargebacks issued against orders shipped under Letter of Credit or Wire terms will be deducted from a future invoice.
• Vendors must dispute Chargebacks or Shortages within 90 days of issuance. URBN will not address questions on chargebacks or research disputes on shortages that exceed 90 days from the date that the order was delivered. We expect that our Vendors will respond in a timely basis with any questions or concerns.
• If the cost of a chargeback exceeds 10% of the PO FOB cost, the chargeback total will be capped at 10% of FOB.

Late Deliveries

Late Deliveries/Backorders: All orders are to be delivered to the corresponding URBN Distribution Center no later than the Cancel Date on the Purchase Order. Deliveries that arrive after the Cancel Date, without specific authorization from the Buyer, will be subject to a penalty of 2% per day charge (10% per week) or cancellation of the order. In addition, Purchase Orders shipped to an Urban Fulfillment Center (GFC, RNO, IFC, KC2) where backorders are incurred due to the late receiving of merchandise, may result in a chargeback of $8.00 per/unit on each backorder taken.

Defective Allowance

Anthropologie Direct Orders Only – Defective Allowance: A 1% defective allowance will be deducted from all Apparel and Accessory invoices. Defective merchandise returned by our customers will not be returned to our Vendors unless the units returned on a specific item substantially exceed the 1% allowance. If this should occur, the Vendor will be contacted and informed of the problem and a Return to Vendor (RTV) will be negotiated.