What is a 'Chargeback'

A chargeback is the charge a credit card merchant pays to a customer after the customer successfully disputes an item on his or her credit card statement.

BREAKING DOWN 'Chargeback'

Customers dispute charges to their credit card usually when goods or services are not delivered within the specified time frame, goods received are damaged, or the purchase was not authorized by the credit card holder.

RELATED TERMS
  1. Chargeback Period

    The timeframe during which a credit card issuer can dispute with ...
  2. Authorized Transaction

    A credit card purchase for which the merchant has received approval ...
  3. Credit Card

    A card issued by a financial company giving the holder an option ...
  4. Secured Credit Card

    A type of credit card that is backed by a savings account used ...
  5. Credit Card Authentication

    The merchant’s process of making sure a customer’s credit card ...
  6. Business Credit Card

    A credit card intended for use by a business rather than for ...
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