Oct 22, 2013

Chargeback or Reversal

A cardholder protection provided by issuing banks, where a transaction is debited against a merchant account in cases of refunds and fraud.The amount of the disputed transaction is immediately withdrawn from the merchant’s bank account, and the merchant has 10 days in which to dispute the chargeback with proof of purchase, signature, proof of delivery, etc. A chargeback fee is usually assessed to the merchant on top of the actual transaction, typically $0 – $100 USD. See also retrieval request.