Chargebacks

A chargeback occurs when a customer disputes a credit card transaction, prompting the bank to reverse the payment to protect the consumer. This can happen if the product was not received, was faulty, or if the customer believes they were billed incorrectly. The process involves the customer filing a claim with their bank, which then reviews the case and may recover the funds from the merchant’s account. Chargebacks help safeguard consumers but can be costly for merchants, as they often face fees and potential loss of sales if disputes become frequent.