A chargeback is a debit or credit card transaction that’s reversed by the cardholder’s bank after they dispute a charge on their account. Chargebacks may also be referred to as payment disputes. The bank will charge back the amount of the disputed transaction to the merchant, returning the money to the cardholder without needing the merchant’s approval. When a cardholder disputes a charge, banks typically review the transaction, and if the reason for the dispute is valid, provide a provisional credit to the customer’s account while the chargeback claim is resolved.
