What is a chargeback?
A chargeback is a transaction reversal initiated by a cardholder through their issuing bank when they dispute a payment.
Why do chargebacks occur?
They occur due to fraud, billing errors, non delivery of goods, or dissatisfaction with services.
How does the chargeback process work?
The issuing bank investigates the claim and, if valid, reverses the transaction and debits the merchant’s account.
What impact do chargebacks have on merchants?
They result in lost revenue, additional fees, and potential penalties if chargeback rates exceed thresholds.
How can merchants prevent chargebacks?
They improve customer service, provide clear transaction details, and use fraud prevention tools.