What is a Chargeback?

A chargeback is a form of consumer protection that allows individuals to dispute charges made to their credit card. Chargebacks are often initiated when a customer is dissatisfied with a product or service they have received, or when they believe that a fraudulent transaction has occurred. In these cases, the customer can request that their bank reverse the charge, effectively providing a refund. Chargebacks can be a valuable tool for consumers, but they can also be a headache for merchants who are unfairly targeted. Merchants who experience a high number of chargebacks may be subject to fines or even the loss of their merchant account.

In order to avoid chargebacks, merchants should take steps to ensure that their customers are satisfied with their products or services. This can include providing clear and accurate descriptions of products, offering easy returns and refunds, and providing excellent customer service. Merchants should also be vigilant about fraud, using tools like address verification and CVV2 verification to ensure that transactions are legitimate.

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