Disputes
Chargeback
A forced reversal of a card payment initiated by the cardholder's issuing bank.
A chargeback happens when a cardholder disputes a transaction with their issuer instead of contacting the merchant. The issuer pulls funds back from the merchant's acquirer and notifies the merchant, who can either accept the loss or fight it through representment. Chargebacks carry fees and, above scheme thresholds, can put a merchant into a monitoring programme.
Frequently asked
How long do I have to respond to a chargeback?
Card schemes usually allow 7–20 days from the chargeback notice to submit representment evidence. Cardflo's dispute workflow surfaces the deadline per case so nothing slips.
Do chargebacks affect my merchant account?
Yes. Sustained chargeback rates above 0.9% (Visa) or 1.5% (Mastercard) trigger monitoring programmes that raise fees and can put your MID at risk. Acquirers price for chargeback risk up front.
Related terms
Any cardholder-initiated challenge to a transaction, covers retrieval requests, chargebacks, pre-arbitration, and arbitration.
The merchant's response to a chargeback, with evidence that the original transaction was valid.
A chargeback filed by a real cardholder for a transaction they actually made, often because they don't recognise the descriptor or want a refund without contacting the merchant.
A pre-chargeback inquiry from the issuer asking the merchant for transaction details.
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