Chargeback

A chargeback is raised by the cardholder's issuing bank: the customer says they did not make the payment, did not receive the goods or received something else. The funds are debited from the merchant, who can fight the claim with evidence such as correspondence, tracking or login logs.

Besides the payment amount, merchants usually pay a fee for each chargeback. If disputes exceed scheme thresholds (typically around 1% of transactions), the acquirer may apply monitoring programs, raise the reserve or close the account.

A clear billing descriptor, 3-D Secure, fast support and easy refunds all reduce chargebacks. Instant transfers such as PIX or UPI work differently and have no classic card chargeback.

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