What is a chargeback?

A chargeback is a credit or debit card charge that is forcibly reversed by an issuing bank. This typically happens after a cardholder claims a transaction was the result of fraud or abuse.

What are the three sources of chargebacks?

Generally speaking, all dispute reasons stem from one or a combination of three main sources: merchant error, criminal fraud, or friendly fraud.

What are common reasons for chargebacks?

There are literally dozens of potential chargeback sources. Some of the most common reasons for chargebacks include items arriving damaged or defective, merchants not providing the goods or services in a timely fashion, buyerâs remorse, and criminal fraud.

Are chargeback reason codes accurate?

No. Chargeback âgray areasâ implicit in the dispute process are not adequately accounted for by current chargeback reason codes. Overreliance on reason codes is possibly the most common chargeback management error. This is because most non-fraud chargebacks are not clear-cut cases of either criminal fraud or cardholder abuse, but rather oscillate somewhere between the two.

Chargeback Information | Article Archives

November 23, 2022 | 16 min read

Prepaid Card Scams

Prepaid cards get more and more popular every year. For consumers, they can be an easy and convenient alternative to shopping with cash or credit cards. But as usual, whatever consumers love, the fraudsters will love, too. How risky are prepaid card scams for consumers and merchants? Let’s find out.

eCommerce Fraud