What are chargebacks?

Chargebacks are transactions that are reversed by a bank or credit card issuer after a customer disputes a charge on their account. They are designed to protect consumers from unauthorized or fraudulent transactions, but can also occur due to issues like goods not being received or dissatisfaction with a purchase. The process involves the cardholder contacting their bank, which then investigates the claim and may refund the money while retrieving it from the merchant. Managing chargebacks is an important task for businesses, as excessive chargebacks can result in fees or even loss of the ability to process credit card payments.