What is a chargeback?

A chargeback is a type of consumer protection required by credit card law in Alaska. It is a process that enables cardholders to dispute transactions or return goods when their bank, credit union, or any other type of card issuer denies payment for a purchase. When a cardholder initiates a chargeback, the issuer refunds the money back to the cardholder and then makes a claim against the merchant for the amount of the purchase. The merchant is then responsible for defending the chargeback or else the issuer will be unable to recover the money. The chargeback process ensures that cardholders are not held financially liable if there is a dispute concerning a purchase. Additionally, it allows cardholders to reverse a transaction if it was done fraudulently or if they believe the purchase was unauthorized. However, cardholders should remember that chargebacks come with a fee, so they should be sure to read the terms and conditions of their card issuer before initiating a chargeback.

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What is a chargeback?

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