What is a Credit Card Charge Back and How Does it Work?
A credit card chargeback is a process that allows customers to dispute a transaction and request a refund from their credit card issuer. It is initiated when the customer contacts their credit card issuer and requests a reversal of the charge. The issuer then investigates the claim and, if approved, reverses the charge and refunds the customer’s money.
The chargeback process begins when the customer contacts their credit card issuer and disputes a charge on their statement. The customer must provide evidence that the charge was unauthorized or that the goods or services were not received as promised. The issuer then reviews the claim and may contact the merchant for additional information. If the issuer finds in favor of the customer, they will reverse the charge and refund the customer’s money.
The chargeback process is designed to protect consumers from fraudulent or deceptive practices. It also helps merchants by ensuring that customers are satisfied with their purchases. However, it is important to note that chargebacks can be costly for merchants, as they may incur fees and other costs associated with the process.