Understanding Chargebacks
What Is a Chargeback?
A chargeback occurs when a customer disputes a charge with their bank. The bank reverses the transaction and you must provide evidence to contest it.
Common Chargeback Reasons
- Customer doesn't recognize the charge
- Product/service not received
- Product/service not as described
- Duplicate charge
- Fraud (stolen card)
When You Receive a Chargeback
- You'll receive notification via email
- Funds are temporarily held from your account
- You have limited time to respond (usually 7-14 days)
Contesting a Chargeback
Gather and submit evidence:
- Signed receipt (if available)
- Order details and itemization
- Any customer communication
- Proof of service/delivery
Preventing Chargebacks
- Use clear merchant name on statements
- Get signatures for large transactions
- Keep detailed order records
- Address customer complaints promptly
- Verify card matches ID for large orders