GlossaryPayments & Finance
Chargeback
Also called: payment dispute
What is Chargeback?
A chargeback is a reversal of a card payment initiated by the customer's bank, usually after a dispute over a transaction the customer says they did not make or did not receive.
Why Chargeback matters
A chargeback takes back the money after the goods have gone, and repeated chargebacks put a merchant account at risk. The defence is documentation, prepared before the dispute exists.
How Chargeback works in practice
Keep the order record, delivery proof and communication for every card transaction, and respond within the deadline. Clear billing descriptors and prompt refunds prevent most disputes from starting.
Frequently asked questions
A refund is initiated by you; a chargeback is forced through the customer's bank, often with a fee attached.