What is a chargeback?
Simply, a chargeback is when a customer disputes a charge with their credit card issuer and requests either a refund or a transaction reversal through the bank.
While a chargeback is frustrating for merchants as it threatens their livelihood, for customers it protects them from dishonest businesses or fraudulent activity. Some of the reasons a customer typically files a chargeback may include:
- They never received the product or service
- They received a damaged or defective item
- They don’t recognize a charge on their credit card
- They were charged multiple times for the same purchase
- They didn’t authorize a payment