Chargebacks are unfortunately a way of life for any merchant who accepts payments via credit or debit cards. A chargeback is a transaction which has been disputed by either the card holder or the issuing bank. Funds from a chargeback are immediately withdrawn from the merchant account to cover the cost of the transaction for the customer. There are many different reasons why a chargeback may be filed. Most commonly chargebacks are associated with fraud where a transaction was made without the card holder’s authorization.
