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. Secured Credit Card

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

    The amount of charges, or lack thereof, owed to the credit card ...
  5. Authorization Date

    The month, day and year when a credit card transaction is approved ...
  6. Private Label Credit Card

    Many stores offer private label credit cards to their customers ...
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