What is a chargeback?

A chargeback is a process that allows a customer to dispute a credit card charge and obtain a refund. Chargebacks were established by the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, which is a federal law that applies to all credit card companies in California. Chargebacks are available to cardholders who believe they were wrongly charged, charged too much, or charged without their knowledge or consent. When a customer files a chargeback, their credit card company will open an investigation and potentially reverse the charge if they find the customer is eligible. The credit card company will also contact the merchant and ask them to respond to the customer’s dispute. If the credit card company finds that the merchant was at fault for the charge, the customer will receive a refund for the disputed charge. If the credit card company finds that the customer is not eligible for a chargeback, the customer can still dispute the charge with the merchant in an effort to resolve the situation. Generally, credit card companies set limits on the amount of time a customer has to file for a chargeback after the charge was made. Customers in California have up to 60 days from the time of the transaction to file a chargeback and can do this through their credit card issuer.

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What is a chargeback?

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