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Glossary

Chargeback

A forced payment reversal initiated by the cardholder’s bank after disputing a transaction.

E-CommercePOS

A chargeback is a reversal of funds initiated by the issuing bank when a cardholder disputes a transaction (e.g., fraud, duplicate billing, undelivered goods).

Merchants must provide evidence—like delivery proof or customer authorization—to defend against chargebacks. Excessive chargebacks can lead to higher fees or account penalties. Strong order tracking, clear refund policies, and fraud screening reduce risk.

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Related terms

Keep learning with these nearby definitions.

Acquirer
Bank or payment institution that signs merchants and routes their card transactions into the card networks.
Apple Pay
Mobile wallet by Apple that tokenizes cards for contactless and in-app payments.
Card Fraud
Unauthorized card use or theft of credentials to initiate transactions.
Card Network
Payment network (e.g., Visa/Mastercard) that sets rules and routes card transactions between issuers and acquirers.
Chargeback