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How does a chargeback work?

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Quick answer

A chargeback is when a card payment is reversed after a customer disputes it with their bank — for fraud, a faulty product, or a charge they didn't authorize. The bank investigates and, if the claim holds, pulls the money back from the merchant.

Step by step

  1. A customer disputes a card charge with their bank.
  2. The bank investigates the claim.
  3. If valid, the payment is reversed from the merchant.
  4. It protects buyers from fraud and bad transactions.

People also ask

How does a chargeback work?
A cardholder disputes a charge; the bank investigates and, if justified, reverses the payment from the merchant.
When can you request a chargeback?
For fraud, unauthorized charges, undelivered goods, or significantly misrepresented products.
How is a chargeback different from a refund?
A refund is given voluntarily by the merchant; a chargeback is forced by the bank after a dispute.