Chargeback

A chargeback is a protective financial mechanism initiated by the issuing bank, where funds are withdrawn from a merchant’s account and reimbursed to the cardholder. This action typically arises when a cardholder disputes a transaction, claiming it was unauthorized or that the merchant failed to deliver the product or service as agreed. The reasons for chargebacks can vary widely, from genuine fraud to misunderstandings about the transaction.

Merchants can contest a chargeback by presenting compelling evidence that contradicts the cardholder’s claim. This evidence can include transaction receipts, shipping confirmations, or any communication that proves the transaction was legitimate and fulfilled according to the terms. Successfully contesting a chargeback requires a thorough understanding of the dispute process and the specific requirements set forth by the card networks.