Turning Subscriptions Chaos into Chargeback Wins in CBD

In the CBD industry, chargebacks are almost inevitable—but for this Shopify-based merchant, they were more than a nuisance. They were paralyzing growth. With 275 chargebacks per month and an average order value of $34.99, friendly fraud had become a serious revenue leak.

The business ran on a subscription model, and while great for retention, it opened the door to disputes like “I didn’t authorize this” or “I canceled already.” Without a clear way to prove customer intent, the merchant started ignoring the chargebacks entirely.

Instead of responding, they relied on alerts only—a short-term Band-Aid that didn’t stop the bleeding. Their response rate was dismal, and their win rate was nearly zero. After a few months, they didn’t even bother anymore.

Enter Verdivo.

We connected directly to their Shopify store and began automatically ingesting every chargeback. But this wasn’t just about automation—it was about fixing the foundation.

We worked with their team to redesign their terms of service and subscription cancellation policies, giving them strong, legally sound evidence for every dispute. With these updated documents embedded into every case, Verdivo was able to deliver high-quality, AI-powered responses tailored to the specific reason codes most common in friendly fraud.

The outcome?

• 100% Response Rate – Every chargeback is now responded to within 48 hours.

• 49% Win Rate – From near-zero to nearly half of cases won.

• $4,700+ Recovered Each Month – All from disputes they were previously ignoring.

• No More Guesswork – Verdivo automatically compiles customer communications, subscription confirmations, TOS links, and shipping data into airtight responses.

“We were letting thousands slip away every month because it felt hopeless. Verdivo gave us a real system—and made chargebacks something we win, not try to forget about.”

Why It Worked:

• Tailored Terms: We helped them create frictionless but protective terms of service to make future disputes easier to win.

• Friendly Fraud Focus: Our AI understands the psychology of friendly fraud and builds arguments that align with processor rules.

• Full Automation: From evidence gathering to submission, their team hasn’t touched a single case since switching.

• Positive Outcome Pricing: With our 25% success fee, there was no cost to get started and no risk in trying.

Verdivo didn’t just plug in and automate—they solved the root issue. This CBD merchant is now recovering thousands in lost revenue, winning more than ever, and sleeping better knowing Verdivo has their back.