What is a chargeback?
A chargeback is a transaction reversal that occurs when a cardholder disputes a purchase they made with a credit card. Chargebacks in Indiana are governed by the Electronic Funds Transfer Act, which provides consumers with the right to dispute a charge if there was an unauthorized, inaccurate, or fraudulent transaction. When a cardholder disagrees with a charge, they can file a dispute with their credit card company. After receiving the dispute, the credit card company will investigate the charge and will either uphold or reverse the charge. If the charge is reversed, the credit card company will typically credit the cardholder’s account and charge the merchant back for the purchase amount. The merchant can, however, dispute the chargeback in an attempt to reclaim the funds. In most cases, the credit card company will make the final decision on the chargeback. Chargebacks are important consumer protections that help ensure credit card transactions are secure and honest.
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