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What is a chargeback? When does it happen?

A chargeback is a form of protection to the cardholder by the Issuing Bank which returns money to the cardholder when disputes happen.

There are numbers of reasons for customers to claim chargeback:

  • Fraud: The cardholder doesn’t recognize the transaction, etc.
  • Clerical: Duplicate billing, incorrect amount billed, etc.
  • Products/Services: item does not receive (INR), significantly not as described (SNAD), etc.
  • Technical: Expired authorization, non-sufficient funds

Also read: Chargeback process

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