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chargeback

chargeback
Noun
pl: chargebacks

This term is specific to the financial and e-commerce sectors, describing a forced reversal of a transaction. It differs from a standard refund, which is a voluntary agreement between the merchant and the customer. A chargeback is an adversarial process initiated by the cardholder through their bank, often involving a formal dispute process.

In a business context, the term often carries a negative connotation for merchants. High chargeback rates are viewed as a sign of poor service or fraudulent activity and can result in severe penalties from payment processors, including the termination of the merchant's account.

Meanings

Nounchargeback

The return of funds to a consumer's account by a credit card issuer after a disputed transaction is investigated and found to be invalid or fraudulent.

The customer filed a chargeback after realizing the merchant had billed them twice for the same order.

Nounchargeback

The process by which a merchant is forced to return funds to a customer via the payment processor's dispute mechanism.

High chargeback rates can lead to a merchant losing their ability to process credit card payments.

Related Words

Última actualización: May 2026Reportar un error