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.
Related FAQs
How do I close a credit card account?What can I do to improve my credit score?
What is a default on a credit card?
What can I do to protect myself from credit card fraud?
What are the penalties for violating the Truth in Lending Act?
What is a credit score?
What is a variable rate credit card?
How can I lower the interest rate on my credit card?
What is the Fair Debt Collection Practices Act?
Is there a maximum amount of credit card debt I can have?
Related Blog Posts
The Basics of Credit Card Law: What You Need to Know - July 31, 2023The Pros and Cons of Credit Card Use - August 7, 2023
What Is the CARD Act and How Does It Impact You? - August 14, 2023
5 Tips for Understanding Credit Card Law - August 21, 2023
Understanding the FDCPA and Its Impact on Credit Card Law - August 28, 2023