Chargeback
A forced transaction reversal initiated by a customer's bank, often used to dispute a charge instead of requesting a refund directly. A high chargeback rate can put a business's merchant account at risk, sometimes leading a processor to raise fees or terminate the relationship - it's treated as a fraud-risk signal rather than a simple dispute.
In practice
Unlike a standard refund, a chargeback pulls funds back through the card network and often comes with an additional fee charged to the merchant - and a high chargeback rate can put a business's ability to accept card payments at risk entirely.
A customer doesn't recognize a charge on their statement and disputes it with their bank instead of contacting the merchant, triggering a chargeback.
Why it matters
A high chargeback rate can put a business's merchant account at risk, sometimes leading a processor to raise fees or terminate the relationship - it's treated as a fraud-risk signal rather than a simple dispute.
Worth knowing
- Comes with an additional fee charged to the merchant, separate from the disputed amount.
- Clear billing descriptors and responsive support reduce chargebacks by giving an easier resolution path.
- Evidence like tracking and delivery confirmation can be submitted to dispute an unwarranted chargeback.
Start the conversation
Let's talk it through
Tell us where things stand with putting chargeback into practice and we'll respond with next steps, no forms, no waiting in a queue.
- A specialist replies directly, not a support queue
- Whichever channel is fastest for you, call, WhatsApp or email
- No long-term contract to start the conversation
