What does Chargeback mean?
A specific transaction that is returned by a credit card issuer to a buyer via a card processing interchange is known as chargeback. Customers may dispute, is specific situations, an acquisition made from a merchant, and demand a chargeback. In other cases it might also happen when a transaction is returned because of a noncompliance on the merchant side with the account rules.
There are a few more explications for chargeback depending on what field of study we are looking at. In accounting the term stands for resource usage and allocation costs which are based on a predetermined sum or actual usage.
In the electronic commerce terminology a chargeback happens when a credit card issuer withdraws the sum previously credited to a merchant’s account adding a chargeback fee to the amount. When a specific card owner disputes a transaction that has been charged on his or her credit card a charge back is initiated. In order to get the amount charged back, the merchant must present proof of the acquisition and further proof of the delivery itself. The merchant typically has a set period to do this, which is ten days in most cases.
It is sometimes spelled charge-back.