What is a chargeback?

A chargeback is a process used to dispute a credit card transaction. It is a way for a cardholder to ask their credit card issuer to reverse a charge due to a dispute with the merchant. When a chargeback is requested, the credit card issuer contacts the merchant and requests a refund. The merchant then has the opportunity to provide evidence that the transaction was valid. In South Carolina, the Credit Card Dispute Resolution Law provides regulations and rules that must be followed when a chargeback is requested. This law states that the merchant must provide evidence that the cardholder received the goods or services from the merchant in order to prove that the transaction was valid, or the credit card issuer must issue a refund to the cardholder. The merchant also must prove that the transaction was not a result of fraud or unauthorized activity. If the merchant does not have sufficient evidence to prove that the transaction was valid, then the credit card issuer must issue a refund to the cardholder. The funds for the refund will be taken from the merchant’s account and returned to the cardholder. It is important for merchants to familiarize themselves with the Credit Card Dispute Resolution Law in South Carolina so that they can understand their options when a chargeback has been requested.

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What is a chargeback?

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