Chargeback
A reversal of a card payment initiated by the customer's bank, typically due to a dispute, fraud claim, or unauthorized transaction.
When a customer disputes a charge, the funds can be pulled back from the business’s account while the dispute is investigated, and a business found responsible for the chargeback loses both the sale and often an additional fee.
A high chargeback rate can affect a business’s standing with its payment processor and is also a factor underwriters may weigh when reviewing processing statements for card-based financing.
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