Glossary
Chargeback
A reversal of a card payment initiated by the cardholder's issuer.
A cardholder who disputes a charge contacts their issuer, which can reverse the payment and debit the merchant through the acquirer. Common reasons include suspected fraud, goods not received and goods not as described.
The merchant can respond with evidence within a deadline set by the scheme. Each chargeback usually carries a fee, and a high chargeback rate can lead to scheme monitoring programmes.