Ulta's Chargeback Program Explained

By Sharon Hayford, Content Writer

Last Updated May 2, 2025

5 min read

In this article, learn about:

Common Ulta chargebacks

Ulta’s chargeback process

How to dispute Ulta chargebacks

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Chargebacks, also known as deductions, are one of the many ways that retailers communicate compliance requirements to their suppliers. Since compliance infractions often occur during the shipping process (i.e., shortages, damages, late deliveries, etc.), the retailer will communicate the infraction to the supplier in the form of a chargeback.

In Ulta’s case, the supplier is notified of the infraction before a chargeback is deducted from the invoice, giving the supplier a chance to explain what happened.

Common Chargebacks from Ulta

Suppliers can find documentation for Ulta’s chargebacks and disputing process via its Supplier Portal, specifically in the Ulta Supply Chain Guide.

As with most retailers, the most common chargebacks for Ulta suppliers come from shortages. However, any compliance infraction that could result in a chargeback falls under the following categories:

Shipping Accuracy (EDI ASN 856). This category refers to shortages or overages, which are based against the ASN sent from the supplier to the retailer.

PO Acknowledgement (EDI 855 POA receipt). This category refers to successful receipt of the ASN 855 within the correct timeframe, which is two business days after the 850 is sent.

Revised Fill Rate. This category refers to the successful process of adjusting the PO amount within the correct timeframe after the 850 is sent.

Inbound Delivery. This refers to whether the PO is received on time or not.

GS1-128 Labeling. Most commonly, this infraction involves “GS1 label content missing/incorrect info” or “GS1 label not scanning.”

EDI 810 Invoice. This category simply refers to Ulta’s invoice compliance in general.

Ulta notifies suppliers via email about any compliance infractions that could result in a chargeback. Ulta does not issue a chargeback on the invoice until after 60 days. This gives suppliers time to review the invoice and associated infraction(s) and dispute them as needed before the chargeback is applied. Suppliers are then directed to dispute any invalid chargebacks through OpenText AI.

Ulta’s Chargeback Process

When an invoice from the supplier doesn’t align with the Remittance Advice sent from Ulta, this is called an Invoice Discrepancy and falls under Ulta’s Chargeback Program. Specifically, this is due to either a Price Variance or a Quantity Variance and, without disputing, the supplier will receive a chargeback.

The supplier will receive an email with the following information when there has been a compliance infraction (or violation) or invoice discrepancy:

The type of compliance violation

The compliance violation category

Compliance violation description

The compliance violation number

The PO number

The DC

The ASN number

Comments

Details

In the initial email, Ulta provides suppliers (or Brand Partners) with the required steps to review and dispute the infraction to avoid a chargeback. The steps are:

Log into OpenText AI portal.

Review the specifics of the infraction/violation.

Review Ulta’s compliance standards and Chargeback Program details.

Escalate feedback to others within the suppliers’ organization (as needed).

Take action on the dispute.

Disputing Chargebacks with Ulta

To specifically “take action” on an invoice discrepancy, suppliers will need to email Ulta at InvoiceShortPay@ulta.com with the following documentation:

Proof of Delivery (POD)

Additional Comment: This statement outlines the details of the infraction, why it is being disputed, and the supplier’s desired outcome.

Claim

Invoice

Packing List (which must include the Bill of Lading (BOL) number)

Purchase Order (PO) acknowledgement (ASN 997)

Ulta is stringent about the format of the email itself. The dispute will be denied if the format does not comply with their guidelines. Specifically, the email's subject line must be the supplier’s vendor number. The body of the email must only contain the PO number. All the documents listed above must be attached to the email.

Ulta’s Chargeback Program primarily encompasses Compliance infractions. This is why the Compliance disputing process differs slightly from the disputing process for Invoice Discrepancies. The documentation required for a dispute is the same for both, but recently, Ulta has begun using OpenText AI (Active Intelligence) for disputing Compliance infractions. For Invoice Discrepancies, the process still involves emailing InvoiceShortPay@ulta.com.

For shortage discrepancies specifically, suppliers have 30 days after receipt of the Remittance Advice Form from Ulta to request a Purchase Order Audit, which must be done before proceeding with a dispute. A Purchase Order Audit functions as a pre-dispute and involves much of the same documentation as above. This process can take up to 6 weeks, and any requests that are submitted outside of the 30-day range are automatically rejected.

Unfortunately, disputes for shortages and overages are rarely granted; however, disputes for late shipments or carton shortages are typically granted, and chargebacks are not added to the invoice.

Ulta will not accept disputes for invoice discrepancies that were previously resolved whether that be a denial or resolution by the supplier’s Accounts Payable Clerk.

On the front end, Ulta rarely includes the final count of what is incorrect with the POD, which is why it may be beneficial to dispute every deduction, even if it may not be granted. The most common incorrect deductions are shortages and overages. Ulta also provides quarterly reports for its suppliers that outline all infractions. However, it is essential to dispute each deduction as they are received.

Additional Deduction Help with SupplyPike

SupplyPike’s software helps suppliers dispute chargebacks or deductions as they arise. SupplyPike removes the cost limit for disputing, helping suppliers dispute both simple and difficult deductions. With SupplyPike, suppliers can dispute deductions without having to email Ulta, saving valuable time and energy with auto disputes.

Start your trial today!

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