Porch Piracy and Chargebacks: What Merchants Can Do
Written by Walt Moscoso
When a package is marked delivered and then stolen, you can win the dispute and still lose. Here's how to handle the gap.
Back to the VAMP guideKey takeaways
- Package theft is common. SafeWise (2025) found 31% of respondents had a package stolen in the past 12 months.
- Sellers often absorb the cost: in the same survey, 27% of victims got a replacement and 19% a refund from the seller.
- A "delivered" scan can win a 13.1 dispute, but winning doesn't remove it from your VAMP count.
- Insurance that covers theft gives covered customers a claim path. It doesn't help buyers who didn't opt in or disputes already filed.
How common is porch piracy?
Two 2025 surveys measured it, with different methods. Their estimates differ by roughly three times, so don't combine them.
| Source | Finding | Method |
|---|---|---|
| SafeWise, 2025 U.S. Package Theft Report | 31% of respondents had a package stolen in the past 12 months; an estimated 104.3 million packages stolen; an estimated $14.9 billion in losses | Online survey, August 2025, 2,500 respondents; totals extrapolated |
| Security.org, 2025 Package Theft Annual Report | One in four Americans (64 million) have ever had a package stolen; an estimated 37 million packages and $8 billion+ stolen over a year; $222 average value | Online survey, October 2025, 3,307 adults, weighted |
SafeWise also asked victims how they were made whole: 27% got a replacement from the seller, 19% got a refund from the seller and 8.5% got a refund from the carrier. In other words, merchants carry much of the cost even when the carrier did its job.
What kind of chargeback does a stolen package cause?
Usually Visa reason code 13.1, Merchandise/Services Not Received. The cardholder says the order never arrived. See our full 13.1 guide.
Sometimes the issuer codes it as 10.4 fraud instead. The issuer, not you, picks the code. A fraud dispute needs a different defense, and the fraud report (TC40) behind it counts toward VAMP regardless of the outcome. Shipping insurance has no effect on fraud codes.
Can you win a chargeback if the package was stolen after delivery?
Often, yes. Visa's guidance for 13.1 points to "Proof of delivery or pick-up, such as certified mail or a carrier's certification that the merchandise was delivered." Carrier tracking showing delivery to the AVS-matched address is strong evidence.
But look at what a win actually gets you:
| Outcome | Your revenue | Your VAMP count | Your customer |
|---|---|---|---|
| You win on proof of delivery | Kept | Dispute still counts | Out the item, likely unhappy |
| You lose or accept the dispute | Lost, plus any fees | Dispute still counts | Refunded through the bank |
| Customer files a covered insurance claim instead | Kept | No dispute to count | Has a claim path that doesn't run through the bank |
That last row is the gap insurance fills: delivered, then stolen. It only applies when the customer opted in and chooses the claim over a dispute.
What can merchants do about porch piracy?
- Require signature confirmation on higher-value orders. A "delivered" scan alone may not show who received the package.
- Offer pickup or hold-at-location options where your carriers support them. Visa's guidance names proof of pick-up alongside proof of delivery.
- Ship only to the AVS-matched address, or flag orders where billing and shipping differ for review.
- Send a delivery notification so the customer can bring the package in quickly.
- Offer clear, opt-in shipping insurance that covers theft. InsureShip covers loss, damage and theft, including porch piracy, up to $5,000 per shipment. InsureShip recommends, and configures by default, an opt-in (unchecked) offer.
- Put the claims link in the delivery email. The moment a customer finds an empty porch is the moment they decide between you and their bank.
- Reply to "it never came" messages the same day. Point covered customers to the claim and decide quickly on uncovered ones.
Should you refund or fight a stolen-package dispute?
Once a dispute is filed, it already counts toward VAMP. Your choice is about revenue, evidence and the customer relationship. Ask:
- Do you have strong proof of delivery? Tracking to the AVS-matched address, plus signature on higher-value orders, gives you a real chance of winning.
- Is it a fraud code? A 10.4 dispute needs fraud evidence, such as Visa Secure authentication or Compelling Evidence 3.0, not just delivery proof.
- Is this a repeat claimant? A pattern of "never arrived" claims to the same address is worth reviewing before you ship again.
- Is the customer worth keeping? A good customer who lost a package to a thief may be better served by a replacement, even if you contest the dispute.
Either way, the lesson is the same: the cheapest dispute is the one that never gets filed.
What shipping insurance can't do for porch piracy
Can
Give a covered customer a fast, paid path that doesn't run through their bank, which can reduce theft-related disputes. It also cuts what you spend replacing stolen orders yourself.
Can't
Remove a dispute already filed, cover buyers who didn't opt in, stop customers who dispute anyway, or touch fraud reports.
Frequently Asked Questions
Who is responsible when a delivered package is stolen?
It depends on your terms, the carrier and card network rules. In practice, SafeWise (2025) found sellers replaced (27%) or refunded (19%) stolen packages far more often than carriers refunded them (8.5%). This is general information, not legal advice.
Does winning a porch piracy chargeback help my VAMP ratio?
No. VAMP counts disputes regardless of outcome. Winning keeps your revenue but not your ratio.
Does shipping insurance cover porch piracy?
InsureShip coverage includes theft, including porch piracy, for orders where the customer opted in. Other products vary, so read the terms.
Can a stolen package be filed as fraud?
Yes. The issuer chooses the reason code, and some non-delivery complaints are filed as 10.4 fraud. Insurance has no effect on fraud reports.
What is the best evidence for a stolen-package dispute?
Carrier tracking showing delivery to the AVS-matched address, signature confirmation for higher-value orders, and the full order-to-delivery timeline.
Does the shipping insurance charge count toward my VAMP ratio?
No. The insurance charge is processed on InsureShip's merchant account, so it is not counted in your sales or your VAMP ratio. This only describes which merchant account the charge falls under. It is not a way to lower your ratio: disputes and fraud reports on your own orders count the same either way.
Cover the empty-porch moment
InsureShip is licensed by the California Department of Insurance (license #0G55434) and covers theft, including porch piracy, with claims filed online. Established in 2009. Underwritten by Navigators, a Hartford company, rated A+ by AM Best (Navigators Insurance Company, as of 2024).
Talk to InsureShipSources
Last checked October 8, 2026. General information, not legal or financial advice. SafeWise: 2025 U.S. Package Theft Report · Security.org: 2025 Package Theft Annual Report · Visa Dispute Management Guidelines (2024) · Stripe: monitoring programs · Chargebacks911 Cardholder Dispute Index (2025) · The Hartford: Navigators fact sheet (Apr 2025)