What is a chargeback fee?
A chargeback fee is a fee charged to the consumer or merchant when a customer disputes a credit card transaction. In California, according to the Credit Card Law, if a customer disputes a credit card transaction, the merchant has the right to file a dispute and request the transaction be reversed. The customer will then be responsible for the chargeback fee and the merchant will be responsible for the bank fee associated with the chargeback. In addition, the merchant may be responsible for other costs associated with the chargeback, such as the cost of goods or services provided to the customer, the cost of processing the chargeback, and the cost of any legal fees associated with the dispute. The merchant will generally have the responsibility for these costs regardless of the outcome of the dispute. Chargeback fees are not refundable in California and are meant to cover the costs associated with a dispute.
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