AT&T $800 Switcher Offer Chargeback Policy Change: What Dealers Need to Know

AT&T has updated the chargeback policy for its $800 Smartphone Reimbursement Switcher Offer, effective October 24, 2025. The new policy introduces a 36-month commitment structure with tiered cancellation fees based on when customers cancel service. This change significantly impacts how dealers should position the offer, educate customers, and manage chargeback risk. Here's everything wireless dealers need to know about the updated policy, customer disclosure requirements, and sales strategies.

🚨 Critical Update Summary

• Effective Date: October 24, 2025 (activations on or after this date)

• Offer: $800 Smartphone Reimbursement Switcher Offer

• New Policy: 36-month commitment with tiered chargeback penalties

• Cancellation Fees: 100% (0-12 months), 50% (13-24 months), 25% (25-36 months), 0% (after 36 months)

• Applies To: Customers who activate on or after October 24, 2025

• Dealer Impact: Must disclose new policy to customers at point of sale

What Changed: Old vs. New Policy

Previous Policy (Before October 24, 2025)

Under the previous policy, AT&T's $800 Smartphone Reimbursement Switcher Offer had less stringent chargeback requirements. While specific terms varied, the new policy represents a significant tightening of cancellation penalties.

New Policy (Effective October 24, 2025)

The updated policy introduces a structured 36-month commitment with clear chargeback penalties tied to when customers cancel service.

Cancellation Timeframe	Chargeback Percentage	Amount Billed (on $800 offer)
0-12 months	100%	$800
13-24 months	50%	$400
25-36 months	25%	$200
After 36 months	0%	$0

Key Policy Details

• Commitment Period: 36 months (3 years)

• Chargeback Basis: Percentage of reward card value issued

• Maximum Chargeback: Up to 100% of original reward card value

• Applies To: Line that received the offer

• Trigger Event: Customer cancels service for the qualifying line

• Billing: Customer will be billed for chargeback amount

Understanding the $800 Switcher Offer

Offer Overview

The AT&T $800 Smartphone Reimbursement Switcher Offer is designed to attract customers switching from competing carriers. The offer provides up to $800 in reimbursement for customers who port their number from another carrier and activate a new line on AT&T.

Eligibility Requirements

• Port-In Required: Customer must port their number from another carrier

• New Line Activation: Must activate a new line on qualifying plan

• Eligible Carriers: Typically excludes AT&T prepaid and Cricket Wireless

• Device Purchase: Must purchase eligible smartphone

• Trade-In: May require trade-in of eligible device (varies by promotion)

• Plan Requirement: Must activate on qualifying unlimited plan

Reward Delivery

• Format: Reward card (virtual or physical)

• Timing: Typically 6-8 weeks after activation and submission

• Submission Required: Customer must submit claim online

• Documentation: May require proof of port-in and device purchase

New Chargeback Policy Breakdown

Cancellation Within 0-12 Months: 100% Chargeback

Customer Impact: If a customer cancels service within the first 12 months, they will be billed for the full $800 reward card value.

Example Scenario

• Activation Date: November 1, 2025

• Reward Card Issued: $800 (December 2025)

• Cancellation Date: June 1, 2026 (7 months after activation)

• Chargeback Amount: $800 (100% of reward card value)

Dealer Consideration: This is the highest-risk period. Customers who cancel early will face the full $800 charge, which may lead to disputes and negative reviews.

Cancellation Within 13-24 Months: 50% Chargeback

Customer Impact: If a customer cancels service between 13-24 months, they will be billed for 50% of the reward card value ($400 on an $800 offer).

Example Scenario

• Activation Date: November 1, 2025

• Reward Card Issued: $800 (December 2025)

• Cancellation Date: June 1, 2027 (19 months after activation)

• Chargeback Amount: $400 (50% of reward card value)

Dealer Consideration: Moderate risk. Customers who stay past the first year but cancel in year two will face a $400 charge.

Cancellation Within 25-36 Months: 25% Chargeback

Customer Impact: If a customer cancels service between 25-36 months, they will be billed for 25% of the reward card value ($200 on an $800 offer).

Example Scenario

• Activation Date: November 1, 2025

• Reward Card Issued: $800 (December 2025)

• Cancellation Date: June 1, 2028 (31 months after activation)

• Chargeback Amount: $200 (25% of reward card value)

Dealer Consideration: Lower risk. Customers who stay for 2+ years but cancel before 36 months will face a $200 charge.

Cancellation After 36 Months: No Chargeback

Customer Impact: If a customer cancels service after 36 months, they will NOT be billed for any portion of the reward card value.

Example Scenario

• Activation Date: November 1, 2025

• Reward Card Issued: $800 (December 2025)

• Cancellation Date: December 1, 2028 (37 months after activation)

• Chargeback Amount: $0 (no chargeback after 36 months)

Dealer Consideration: No risk. Customers who complete the 36-month commitment can cancel without penalty.

Impact on Wireless Dealers

Disclosure Requirements

Dealers must clearly disclose the new chargeback policy to customers at the point of sale. Failure to do so may result in:

• Customer disputes and complaints

• Negative reviews and reputation damage

• Potential regulatory issues

• Increased chargeback disputes with AT&T

Sales Process Changes

Dealers should update their sales process to include:

1. Verbal Disclosure: Explain the 36-month commitment and chargeback structure

2. Written Documentation: Provide customers with written summary of policy

3. Customer Acknowledgment: Obtain customer signature acknowledging understanding

4. Follow-Up Communication: Send email or text confirming policy details

Chargeback Risk Management

While the chargeback is billed to the customer (not the dealer), dealers should still manage risk by:

• Qualifying customers carefully (assess likelihood of staying 36 months)

• Educating customers thoroughly about commitment

• Setting realistic expectations about service and coverage

• Providing excellent customer service to reduce cancellations

Customer Retention Strategies

To minimize cancellations and chargebacks:

• Proactive Check-Ins: Contact customers at 30, 90, and 180 days

• Issue Resolution: Address service issues quickly

• Value Reinforcement: Remind customers of benefits and savings

• Loyalty Programs: Offer incentives for staying active

Customer Communication Scripts

Script 1: Initial Disclosure at Point of Sale

Dealer: "Great news! You qualify for AT&T's $800 Smartphone Reimbursement Switcher Offer. Here's how it works: You'll receive an $800 reward card after activation. However, this offer comes with a 36-month commitment. If you cancel service before 36 months, you'll be charged a percentage of the $800 based on when you cancel."

Dealer (continued): "Specifically: If you cancel in the first 12 months, you'll be charged the full $800. If you cancel between 13-24 months, you'll be charged $400. If you cancel between 25-36 months, you'll be charged $200. After 36 months, there's no charge. Do you plan to stay with AT&T for at least 3 years?"

Script 2: Addressing Customer Concerns

Customer: "What if I need to cancel before 36 months?"

Dealer: "If you cancel before 36 months, you'll be billed for a portion of the $800 reward card. The amount depends on when you cancel. Most customers who switch to AT&T stay long-term because of the network quality and value. But if your situation changes, you'll want to factor in the chargeback amount. Let me show you the breakdown."

Script 3: Qualifying the Customer

Dealer: "Before we proceed with this offer, I want to make sure it's the right fit. Are you planning to stay with AT&T for the next 3 years? The $800 offer is fantastic, but it does come with a 36-month commitment. If there's any chance you might switch carriers or cancel service in the next few years, we should discuss other options."

Script 4: Written Confirmation

Email/Text Template:

Thank you for switching to AT&T! You've been enrolled in the $800 Smartphone Reimbursement Switcher Offer. Here's what you need to know: Offer Details: • Reward Card Value: $800 • Delivery Timeline: 6-8 weeks after activation • Commitment Period: 36 months (3 years) Cancellation Charges: • Cancel within 0-12 months: $800 charge • Cancel within 13-24 months: $400 charge • Cancel within 25-36 months: $200 charge • Cancel after 36 months: No charge If you have any questions about this offer, please contact us or visit your local AT&T store. We're here to help!

Comparison: Old vs. New Policy Impact

Aspect	Previous Policy	New Policy (10/24/25+)	Impact on Dealers
Commitment Period	Less stringent	36 months (3 years)	Longer commitment required; need better customer qualification
Chargeback Structure	Unclear/variable	Tiered (100%, 50%, 25%, 0%)	Clear policy; easier to communicate to customers
Maximum Chargeback	Variable	100% of reward value	Higher risk for early cancellations; more customer disputes
Disclosure Requirements	Basic	Explicit (36-month commitment)	Must provide written documentation; customer acknowledgment needed
Customer Retention Risk	Moderate	Higher	Customers more likely to dispute chargebacks; need proactive retention

Dealer Action Plan

Immediate Actions (This Week)

1. Policy Review: Review the new chargeback policy in detail

2. Staff Training: Train all sales staff on new policy and disclosure requirements

3. Documentation: Create written summary of policy for customer handouts

4. POS Updates: Update point-of-sale system with new policy language

5. Signage: Create in-store signage highlighting 36-month commitment

Short-Term Actions (This Month)

1. Customer Qualification: Develop screening questions to assess 36-month commitment likelihood

2. Sales Scripts: Implement new disclosure scripts with all staff

3. Documentation Process: Create system for obtaining customer acknowledgment of policy

4. Follow-Up System: Set up email/text confirmations of policy details

5. Retention Strategy: Develop proactive customer check-in schedule

Long-Term Strategy (Next Quarter)

1. Performance Tracking: Monitor switcher offer activations and cancellation rates

2. Chargeback Analysis: Track chargeback disputes and customer complaints

3. Retention Metrics: Measure customer retention by month (12, 24, 36)

4. Process Optimization: Refine qualification and disclosure process based on results

5. Competitive Analysis: Monitor competitor switcher offers and policies

Frequently Asked Questions

When does the new policy take effect?

The new chargeback policy is effective October 24, 2025, and applies to customers who activate their phone on or after that date.

Does this apply to existing customers?

No. The new policy only applies to customers who activate on or after October 24, 2025. Existing customers with the switcher offer are not affected.

What if a customer cancels one line but keeps others?

The chargeback applies only to the specific line that received the $800 switcher offer. If a customer cancels that line but keeps other lines active, they will be charged the chargeback amount for that line only.

Can the chargeback be waived?

AT&T may consider waiving chargebacks in specific circumstances (service issues, network problems, etc.), but this is at AT&T's discretion. Dealers should not promise waivers to customers.

How is the chargeback billed to the customer?

The chargeback is typically billed to the customer's final bill or account. AT&T may also pursue collection if the customer doesn't pay.

What if the customer disputes the chargeback?

Customers can dispute chargebacks with AT&T. Dealers should document the disclosure and customer acknowledgment to support AT&T's position if disputes arise.

Does the reward card need to be used for the chargeback to apply?

The chargeback applies based on the reward card value issued, regardless of whether the customer uses the card. If a customer cancels before the reward card is issued, AT&T will determine the chargeback based on the offer value.

Can dealers be held liable for chargebacks?

Dealers are not typically held liable for chargebacks, but they can face disputes and complaints if customers claim they weren't properly informed. Proper documentation and disclosure protect dealers.

What should dealers do if a customer wants to cancel within 36 months?

Dealers should: (1) Confirm the customer understands the chargeback amount, (2) Offer alternatives (plan changes, service improvements), (3) Document the customer's decision, (4) Provide written confirmation of the chargeback amount.

How does this affect dealer reputation?

The higher chargeback amounts (especially 100% in year one) may lead to customer complaints and negative reviews. Dealers should manage expectations carefully and provide excellent service to minimize cancellations.

Risk Mitigation Strategies

Customer Qualification

Ask qualifying questions to assess commitment likelihood:

• "How long do you typically stay with a carrier?"

• "Are you planning to stay in the same area for the next 3 years?"

• "Is your employment stable, or might you relocate?"

• "Have you had issues with AT&T before, or is this your first time?"

Documentation

Create a paper trail:

• Written summary of chargeback policy

• Customer signature acknowledging 36-month commitment

• Email/text confirmation of policy details

• Notes on customer's stated commitment level

Service Excellence

Reduce cancellations through:

• Proactive customer check-ins at 30, 90, 180 days

• Quick issue resolution

• Regular value reinforcement

• Loyalty incentives and rewards

Dispute Management

If customers dispute chargebacks:

• Provide documentation of disclosure

• Reference customer acknowledgment

• Explain policy clearly and professionally

• Escalate to AT&T if needed

Competitive Implications

How This Compares to Other Carriers

AT&T's new policy is more stringent than some competitors:

• Verizon: Similar switcher offers with comparable commitment periods

• T-Mobile: Often more aggressive with switcher offers; may have different chargeback structures

• MVNOs: Generally offer lower switcher incentives with less stringent commitments

Dealer Positioning

Use this policy to your advantage:

• Transparency: Position your dealership as transparent and honest about terms

• Customer Education: Emphasize your commitment to customer understanding

• Service Quality: Highlight your ability to support customers through the 36-month commitment

• Alternatives: Offer other options if customers aren't comfortable with the commitment

Bottom Line for Dealers

AT&T's updated chargeback policy for the $800 Smartphone Reimbursement Switcher Offer represents a significant change that requires careful management:

• 36-Month Commitment: Customers must commit to 36 months or face chargeback penalties

• Tiered Chargebacks: 100% (0-12 months), 50% (13-24 months), 25% (25-36 months), 0% (after 36 months)

• Disclosure Critical: Clear communication and written documentation are essential

• Customer Qualification: Screen customers carefully to assess commitment likelihood

• Retention Focus: Proactive customer service reduces cancellations and disputes

• Documentation: Proper records protect dealers from disputes

• Risk Management: Higher chargeback amounts in year one require careful positioning

Dealers who properly implement this policy, train staff thoroughly, and focus on customer retention will minimize disputes and maximize the value of the switcher offer. Those who fail to disclose the policy clearly risk customer complaints, negative reviews, and regulatory issues.

Key Takeaways

• Policy Change: AT&T updated chargeback policy for $800 switcher offer effective October 24, 2025

• 36-Month Commitment: Customers must keep service active for 36 months to avoid chargebacks

• Chargeback Schedule: 100% (year 1), 50% (year 2), 25% (year 3), 0% (after 36 months)

• Applies To: Activations on or after October 24, 2025 only

• Disclosure Required: Dealers must clearly explain policy at point of sale

• Documentation Essential: Written summary and customer acknowledgment protect dealers

• Customer Qualification: Screen for 36-month commitment likelihood

• Retention Critical: Proactive service reduces cancellations and disputes

• Risk Management: Higher year-one chargebacks require careful positioning

• Competitive Advantage: Transparent disclosure differentiates your dealership