A credit card chargeback occurs when a consumer disputes a charge that was made on their card. In these cases, the issuer contacts the merchant’s bank or acquirer and requests more information. The issuer will also pay a fee, typically $20 to $100. The business can either agree to the chargeback or contest it. To fight a claim, the business must provide evidence that it was not at fault. After the dispute is resolved, the business will receive the money back.

Once the merchant agrees to the chargeback, the issuer will request that the customer provide proof of other attempts to collect the funds. The issuer may request receipts, documents related to the transaction, and information about the merchant. If the issuer approves the chargeback, the funds will be returned to the cardholder’s account and the credit card issuer will remove the charges from the cardholder’s account. If the chargeback is rejected, the merchant will have the option to appeal the decision or submit a counterclaim.

The most common reason for a credit card chargeback is that the consumer didn’t act promptly. In many cases, the time limit for requesting a refund has passed. In some cases, the cardholder simply forgot about the transaction or did not recognize it. The merchant’s actions in this situation are entirely up to the individual, but most merchants should follow the guidelines carefully to avoid unnecessary disputes. Using the chargeback process to resolve billing disputes is a good way to make sure that a credit card is not used fraudulently.