What You Need to Know About Chargebacks

By definition, a chargeback is, “a credit card transaction reversal meant to serve as a form of consumer or business protection from fraudulent or disputed activity committed by both merchants and individuals.”

Essentially, it is a customer’s claim that the product or service purchased on their credit card was not purchased by them, was purchased without their knowledge, was never received, or was not satisfactory.

Often this is due to identity theft or a stolen credit card, but not always. In fact, studies have shown that 71% of chargeback disputes are categorized as fraud, and of those, 77% are considered “friendly fraud”.

source https://www.emscorporate.com/news/what-you-need-to-know-about-chargebacks