Chargeback

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. Authorized Transaction

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

    A card issued by a financial company giving the holder an option ...
  3. Credit Card Authentication

    The merchant’s process of making sure a customer’s credit card ...
  4. Universal Default

    A practice whereby a credit card issuer increases a credit card ...
  5. Business Credit Card

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

    A card that charges no interest but requires the user to pay ...
Related Articles
  1. Credit & Loans

    The History Of Consumer Credit Rights

    The Fair Credit Billing Act of 1974 gave consumers the power to dispute credit card charges.
  2. Credit & Loans

    Credit vs. Debit Cards: Which Is Better?

    Be strategic about the card you choose
  3. Credit & Loans

    How Many Credit Cards Should You Carry?

    If you have ever wondered whether you should carry one, two or more cards, read on and we'll tell you.
  4. Credit & Loans

    Credit, Debit And Charge: Sizing Up The Cards In Your Wallet

    Not all plastic is equal! Learn the difference between the three kinds, and how each can affect your finances.
  5. Credit & Loans

    Credit Cards: Types Of Credit Cards

    By Brigitte YuilleCredit card products come in a wide assortment these days. Some credit card programs will ease their terms and conditions and offer perks for people with stellar credit, such ...
  6. Entrepreneurship

    The Pros And Cons Of Small Business Credit Cards

    Business owners have many financial tools at their disposal. Should a credit card be one of them?
  7. Credit & Loans

    What Happens When Your Credit Card Expires

    You can take advantage of this process to learn about other cards that may better suit your needs.
  8. Credit & Loans

    Credit Card Or Cash?

    Credit cards are convenient to use, but not always the best choice. Here are 5 times you shouldn't pay with a credit card – and 5 times you should.
  9. Credit & Loans

    Best Credit Cards For People With Poor Credit Scores

    There are still ways you can build credit with a credit card, even if you have bad credit.
  10. Credit & Loans

    Terrible Credit Score? Try These Credit Cards

    When your credit is less than stellar you have fewer choices. But some are still better than others. Here's our read on which cards to get.
RELATED FAQS
  1. Where are secured credit cards accepted?

    Repair a damaged credit history or establish one by opening a secured credit card account with a collateral deposit into ... Read Answer >>
  2. How do secured credit cards help me build my credit score?

    Find out how secured credit cards function and why they can be very useful for those looking to build or rebuild their credit ... Read Answer >>
  3. Why do credit card companies calculate revenue splits in terms of basis points?

    Discover how revenue splitting works and how credit card companies are able to utilize basis points in revenue splits to ... Read Answer >>
  4. When should I use a credit card?

    I am currently taking a personal finance class and my teacher continually tells us not to use credit cards for everyday purchases, ... Read Answer >>
  5. Am I responsible for fraudulent charges on my credit card?

    In the event that your credit card is stolen in the United States, federal law limits the liability of card holders to $5 ... Read Answer >>
  6. What is the best way to start to rebuild your credit after a bankruptcy?

    Find out some simple steps you can take to rebuild your credit score gradually after filing a bankruptcy, starting with a ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center