The act of reclaiming funds that have been paid to a merchant in instances of a dispute or improper card payment. The chargeback process is initiated by the cardholder’s issuer against the merchant for the transaction amount plus any applicable chargeback fees.

A chargeback occurs because the cardholder has never received their goods or services, has been refused a refund, or has experienced fraud. Chargebacks normally take several business days for full settlement .