The United States Postal Service is causing many merchants to get chargebacks from their customers due to their inability to do their job and deliver packages in a timely manner with accurate tracking information.

When a consumer purchases something from a business, they expect the item to be shipped and delivered in a timely fashion. Unfortunately, the USPS has had problems losing packages and not updating the tracking information, which in turn causes the consumer to think that the business ripped them off and took their money without ever sending their items.

This is a widespread, common problem. If you’re a consumer, please be patient. This isn’t the fault of the business, and issuing a chargeback with your bank is hurting that small business for something that’s not their fault. If you’re making a purchase online and you have the option to select the shipping provider, we advise you to use one other than the USPS. Yes, USPS is [usually] a lot cheaper. But as the old saying goes, you get what you pay for.


Ladies and gentlemen, boys and girls, it’s your boy, Jaron Rice, founder and CEO of Magothy Payments,  Maryland’s highest-rated merchant services provider.

I want to take a moment and talk to you about the USPS, the United States Postal Service. I have no idea what is going on over at USPS, but it is causing a problem for a lot of businesses and a lot of merchants, especially eCommerce merchants who ship goods to their clients.

I know we personally have a number of clients right now who are dealing with chargebacks from their customers because the USPS wet the bed on doing what they’re supposed to do, which is delivering packages. This is not a direct insult to USPS employees who are doing their job. If you are a good worker and you are doing your job, I am not talking about you, so please don’t take offense to this. But the organization as a whole has a history of incompetence.

When a merchant ships an item and gets a tracking number and it goes off and USPS does what they do and that tracking number doesn’t update for weeks or months, then that customer who is expecting those goods, turns around and issues a chargeback on the merchant as if the business didn’t do their part when in actuality it is the post office who sucks. This is happening a quite a bit.

The advice that I have is if you are consumer, please, please, please be patient with these businesses. It is not the business’ fault. I understand that you purchased something. You’re expecting it. It’s not their fault, OK? Issuing a chargeback only hurts the business.

If you are a business, we can help you with the chargeback portion. Our clients, we offer chargeback assistance at no additional cost. Just an update to our existing clients in how we do our order of operations for chargebacks, we’ve recently updated it so that we, Magothy Payments, are notified via email the moment a chargeback comes across so that we can begin that process for our clients.

It’s very, very difficult right now for eCommerce merchants, and a lot of them, a lot of our clients are dropping USPS as a service provider because they’re not doing their jobs properly. When an eCommerce merchant has multiple providers, as a consumer you go the website and it says, “FedEx is this much. UPS is this much. USPS is this much.” USPS is usually the cheapest option, and so people by default are like, “This one is cheaper. I’m going to choose this one.” A lot of times in life you get what you pay for, and it’s causing problems.

Again, we want you to be aware of an issue that is happening quite a bit. If you’re having an experience like that right now either as a business or a consumer, tell us about it down here in the comments. Leave us a note, and I hope this information was helpful. I hope you understand why things are happening the way that they are.

If you have any questions, you can always reach out to us. So if you enjoy the content, please consider subscribing and liking and sharing this video. Hope you’re having a great day. Take care.

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