A chargeback is the payment amount that is returned to a debit or credit card after a customer disputes the transaction.
The chargeback process can be initiated by either the merchant or the cardholder’s issuing bank.

A chargeback can be considered a refund since it returns the funds taken from an account through a prior purchase, and it differs from a voided charge, which is never fully authorized for settlement.
Though the two terms are often used interchangeably, a chargeback is different than a refund.
A refund is a repayment from a merchant when the original product was returned or the service was faulty (scam).
A chargeback is when the card issuer returns funds to the account due to a disputed charge.

Disputing a potential chargeback can be challenging.
It requires time to dispute the charge with a customer service representative or the issuing bank, and may also require a receipt or proof of transaction.
In the case of fraudulent charges, banks are usually highly supportive in researching and issuing chargebacks.
If a chargeback is initiated by the issuing bank, then the issuing bank facilitates the chargeback through communication on their processing network.
The merchant bank then receives the signal and authorizes the funds’ transfer with the confirmation of the merchant.

In some cases, such as with fraudulent charges, the issuing bank may grant the cardholder a chargeback while also sending the claim to a collection department.
In this case, a bank takes on the liability and absorbs the cost through reserve funds while researching and resolving the claim.

Our specialists can help you review the potential results of such a request and assist with starting the process.