What is a chargeback?

Chargeback for credit cards

A chargeback occurs when a consumer requests a refund from their credit card company. The merchant is billed by its merchant bank, which has been billed initially by the card issuer. A chargeback fee, often up to $35, is charged per incident to the merchant, which is not refundable regardless of the outcome of the dispute. The merchant bank will charge the merchant a fee for the retrieval of information, and if it is determined that the customer is right, there will be another fee for the chargeback itself. The customer will be refunded their money directly through the credit card company and your checking account will be debited. Eventually, if your account has excessive chargebacks, the bank may choose to cancel your account. So, the more you do to protect yourself against chargebacks, the better off you’ll be.

Tags: , , , ,