Chargeback
A transaction reversal initiated by a cardholder's bank due to dispute or fraud.
Detailed Description
Chargeback
What is a chargeback?
A chargeback is a reversal of a transaction initiated by a cardholder's bank or credit card issuer, allowing consumers to dispute a charge.
What are the types of chargebacks?
Chargebacks can be categorized into fraudulent chargebacks, service/product not received, defective/not as described, billing errors, and credit not processed.
How does the chargeback process work?
The chargeback process involves initiation by the cardholder, investigation by the bank, a decision, notification to both parties, and resolution if approved.
What impact do chargebacks have on merchants?
Chargebacks can incur costs for merchants, lead to penalties from credit card networks, and damage their reputation.
What strategies can merchants use to prevent chargebacks?
Merchants can prevent chargebacks by ensuring clear communication, maintaining quality assurance, offering customer support, and implementing fraud prevention tools.