What is Chargeback in Retail? Explained

A chargeback is a consumer protection mechanism allowing credit cardholders to dispute unauthorized or fraudulent transactions with their issuing bank. This process is initiated when a customer disputes a charge on their statement, and the bank investigates the claim. Chargebacks can also arise from issues like product non-delivery or dissatisfaction. While designed to protect consumers, chargebacks can pose challenges for merchants, as they may incur fees and impact their reputation. Merchants often strive to address customer concerns promptly to avoid chargebacks and maintain positive customer relationships.