Definition
When your credit card issuer reverses a payment because of a disputed or fraudulent transaction. You get your money back if the dispute is resolved in your favor.
What to consider
- Keep your receipts so you can quickly challenge any questionable charges.
- Act fast if you spot an error on your statement.
- It’s a helpful tool to correct mistakes without hassle.
Real world scenarios
- Josie notices an unfamiliar charge on her credit card statement and quickly initiates a chargeback to investigate potential fraud.
- A damaged product leads Ryan to request a chargeback when the merchant refuses a refund, protecting his funds.
- Thomas realizes he was double-billed for a hotel reservation, so he files a chargeback for the duplicate charge.
Related terms
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