e-Commerce Glossary · T-U

What Is Chargeback?

A refund process that occurs when a credit card holder disputes a transaction made on their card and cancels it. A chargeback is usually requested for transactions made without the cardholder's permission, or when the purchased product or service is not delivered as promised. In the chargeback process, the payment is reversed and returned to the cardholder, and the amount is taken back from the seller.