What It Means
A chargeback occurs when a cardholder disputes a charge-citing fraud, non-delivery, defective goods, or billing errors-and the issuer reverses the funds from the merchant. Federal law gives consumers strong protections under the Fair Credit Billing Act, with dispute windows generally up to 60 days from the statement date. Chargebacks are distinct from refunds, which merchants issue voluntarily. Excessive chargeback activity can prompt issuer review of the account.