What is a chargeback?
If a cardholder is unhappy with the goods or services they received, or they suspect a transaction was fraudulent, they can raise a chargeback with their bank. This means their bank will automatically refund the amount of the disputed transaction.
Why do chargebacks occur?
Chargebacks can happen for several reasons, including:
A suspected fraudulent transaction
The goods or services provided were not as described, were defective, or were not received by the cardholder
The card was not valid at the time of the transaction (e.g., before the valid date or after the expiry date)
Authorisation for the transaction was not obtained