Business glossary
Chargeback
A card payment reversed after the cardholder disputes the transaction through the issuer.
Example
A customer disputes a $250 card payment with the card issuer. The processor may reverse the payment or hold funds while the dispute is reviewed. Keep the invoice, delivery evidence and communications associated with that transaction.
How it differs from related terms
A chargeback is initiated through the card dispute process. A refund is normally initiated by the merchant. Respond using the processor's actual deadlines and instructions; marking an invoice paid does not prevent a later dispute.
Frequently asked questions
What is an example of chargeback?
A customer disputes a $250 card payment with the card issuer. The processor may reverse the payment or hold funds while the dispute is reviewed. Keep the invoice, delivery evidence and communications associated with that transaction.
How should chargeback be interpreted?
A chargeback is initiated through the card dispute process. A refund is normally initiated by the merchant. Respond using the processor's actual deadlines and instructions; marking an invoice paid does not prevent a later dispute.