What is a chargeback?

Chargeback’ is the term used for debiting a merchant’s bank account with the amount of a transaction that had previously been credited.

If you do a chargeback, your creditcard will be cancelled. That means that you will need to resubscribe to all your services attached to your creditcard (like Netflix, phone company etc.).

There are a number of different reasons why a transaction will be charged back, but they mainly fall into two categories:

• Where the merchant has made an error at the point of sale, for example, an expired card has been used;
• The cardholder or the Card Issuing Company (“the Issuer”) is disputing the transaction. For example the card or cardholder were not present at the point of sale and possible fraud may have taken place.