What is a chargeback?
A chargeback happens when a cardholder is unhappy with their purchase or thinks a transaction seems suspicious. They’ll ask their bank to refund the amount, and the money is sent back automatically.
Why do chargebacks happen?
Chargebacks can pop up for a few reasons:
A suspected fraudulent transaction
The goods or services weren’t as described, didn’t arrive, or were faulty
The card wasn’t valid at the time (before its start date or after its expiry)
No proper authorisation was obtained for the payment.