Payments
Chargeback
A transaction reversal initiated by a customer's bank when they dispute a charge on their credit card or payment method.
What is Chargeback?
A chargeback occurs when a customer disputes a transaction with their bank or payment provider, requesting a reversal of the charge. Common reasons include unauthorized transactions, product not received, or product not as described. For dropshipping stores, chargebacks are particularly challenging due to longer shipping times. Automated chargeback defense systems can recover 60-80% of disputed chargebacks by instantly generating evidence packages with tracking data, delivery confirmation, and customer communication history.
Related Terms
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