Chargeback Definition.
Card dispute process: at the cardholder’s request (fraud, goods not received, service not as described), the issuer claws the funds back from the acquirer, which debits the merchant. Scheme rules govern the process, with dispute windows of around 120 days and standardized reason codes. The real cost to the merchant: the lost amount, plus a handling fee (€15 to €50), plus a higher chargeback ratio.
See also
Where this term appears
GuideThe four-party modelGuideThe role of banksGuideMerchant, acquirer, PSPGuidePayment schemesGuidePayments in the BalkansGuidePayments in the Baltics and FinlandGuidePayments in the Netherlands and BelgiumGuidePayments in Central and Eastern EuropeGuideManaging SCA exemptions: fraud rates, audits, and losing the exemptionGuidePayments in FranceGuidePayments in Greece, Cyprus, and MaltaGuidePayments in Hungary, Czechia, and Slovakia