Chargeback
A cardholder disputes a transaction with their issuer and the amount is reversed out of the merchant’s account pending the outcome. It is a scheme process with deadlines and evidence requirements, and it is distinct from a refund, which the merchant chooses to give.
Why it matters to a merchant
The thing worth internalising is that a chargeback is a scheme process with a clock, not a negotiation with the customer. Evidence submitted inside the window is what decides it, and the evidence that works is ordinary: the signed docket, the delivery record, the terms the customer agreed to. Merchants who keep those as a matter of routine spend far less time on disputes than merchants who go looking for them afterwards.
Where this comes up
Pages on this site that deal with this in context:
Related terms
In this section: How a payment moves