Chargeback

Chargeback is a complaint procedure for credit card payments. It is initiated by the bank after a customer reports an irregularity in a transaction. It allows the bank to claim a refund from the entity (person or company) that failed to fulfill the contract (e.g. failed to send the paid goods).

The chargeback mechanism is also used in other situations related to errors regarding card operations, such as an ATM issuing the wrong amount.