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What is a chargeback?

Last Updated: Mar 01, 2019 11:11AM CST
A chargeback occurs when your client or the cardholder disputes a specific credit card transaction. A chargeback is initiated by the cardholder through their card-issuing bank. This action allows the card brands to investigate the charge.

In the event of a client chargeback or charge dispute, the best defense is a good offense. The card-issuing bank is looking to see if you, the merchant, had permission to charge the credit card, and did you provide a service. A few simple steps on the front end can help ensure your firm has the best opportunity to win a chargeback case, and avoid potential loss of income. Make sure you get a signed credit card authorization form and always keep some proof of services rendered.

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