Chargeback

Category: Payments

Also searched as: Card dispute

Definition (plain English)

A card-payment reversal initiated through the issuing bank after a customer or cardholder disputes a transaction.

Why it matters commercially

Chargebacks remove revenue, add fees, consume evidence time, and can threaten merchant accounts when rates are high.

Example

A marketplace seller lost a chargeback because delivery proof did not match the buyer name and the refund policy was not documented.

Common mistake

Assuming a shipped order is safe without proof of delivery, customer communication, refund policy, fraud controls, and dispute deadlines.

Use this in CommerceKit