What is a chargeback?

A chargeback is when your business has a credit card payment reversed after the customer raises a dispute directly with their bank about a charge your business applied.

The mechanism means that the cardholder can go to their bank and ask it to get the money back from the merchant — like a refund but from the other side of the transaction.

In the most basic terms, it’s the reversal of a credit card payment.

To help you understand chargebacks and how they affect your business, we’re going to look at: