What is a Chargeback?

A chargeback occurs when a customer disputes a credit or debit card transaction with their bank. If the bank rules in the customers favor, the transaction amount is returned to the customer and deducted from the merchants account.

Chargebacks can occur for a variety of reasons, including unauthorized transactions, duplicate charges, billing errors, or claims that products or services were not received as expected. In many cases, merchants have the opportunity to respond to the dispute by providing documentation that supports the transaction.

• Technical — Expired authorization, non-sufficient funds or processing error.
• Clerical — Duplicate billing, incorrect amount billed, or refund never issued.
• Quality — Consumer claims goods never received as promised at time of purchase.
• Fraud — Consumer claims they did not authorize purchase or identity theft.