Chargeback Process

A chargeback is a process where a credit cardholder disputes a transaction they believe is incorrect or unauthorized. Once the dispute is raised, the card issuer investigates and may request the merchant to provide evidence that the transaction was valid. If the issuer finds in favor of the customer, they reverse the charge, refunding the money to the cardholder. This helps protect consumers from fraud or errors but can also be costly to merchants if abused. The process involves multiple steps—dispute filing, investigation, and resolution—aiming to ensure fair handling of payment issues.