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What is a chargeback dispute?

charge - back dis-pute
noun

A chargeback dispute refers to the procedure initiated by a customer who contests a transaction made with their credit or debit card. These disputes can arise for a variety of reasons, including misunderstandings, unawareness of the purchase or, in more serious cases, suspicion of fraudulent activity.

When a customer disputes a transaction, their issuing bank becomes actively involved in investigating the matter. Conversely, to prevent instances where consumers might misuse refund processes to secure unwarranted reimbursements, merchants also have the option to challenge such charges.