Chargeback

A demand by a credit card provider for a retailer to make good the loss on a fraudulent or disputed transaction.

Chargeback is a return of money to a payer of a transaction, typically initiated by the payer’s bank. It is meant to protect consumers from unauthorized transactions and fraud. For example, if a customer disputes a charge on their credit card for a product they claim they did not receive, the credit card company may issue a chargeback to the merchant, reversing the transaction.