Walmart vendor compliance: how chargebacks work
Walmart runs one of the most systematized supplier compliance programs in retail. Accounts-payable deduction codes (the numbered codes like 22, 24, 25) are taken automatically against invoices, while performance programs like OTIF and SQEP assess separate fines for late, incomplete, or poorly prepared freight.
Compliance programs to know
OTIF (On-Time In-Full)
Measures whether POs arrive within the delivery window and complete. Cases that fail OTIF standards are fined as a percentage of their cost of goods.
SQEP (Supplier Quality Excellence Program)
Phased program fining defects in PO accuracy, barcode/labeling, packaging, and pallet build quality — checked at the DC before freight moves downstream.
AP deduction codes
Numbered accounts-payable codes deducted automatically for shortages, pricing differences, duplicate billing, and paperwork errors.
Walmart chargeback codes by category
27 codes tracked. View the full list →
Accounts Payable / Pricing
Accounts Payable / Invoicing
Accounts Payable / Shortage
Accounts Payable / Damage
Accounts Payable / Allowance
Accounts Payable / Payment terms
Accounts Payable / Returns
Compliance / OTIF
Disputing Walmart deductions
Deductions are disputed through the Accounts Payable Dispute Portal (APDP) in Retail Link. Winning disputes generally requires shipment evidence — signed BOL/POD, ASN transmission records, and invoice data that reconciles.
Supplier portal: Retail Link
Prevention beats disputes
Most Walmart chargebacks trace back to preventable data and shipping errors. See the step-by-step playbook:
How to prevent Walmart chargebacks →Sources
Chargeback.ai is not affiliated with Walmart. Verify current requirements in Retail Link.
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