What is a chargeback?
A chargeback is, in the simplest possible terms, the retroactive cancellation and refund of a charge made on your credit card or debit card. You request a chargeback from the bank that issued the card itself. But you can do so only under one of two conditions:
- You did not authorize the transaction, or
- The transaction was for goods or services that the merchant did not deliver as per a contract, receipt or some other written agreement
If you did not authorize a particular purchase, then you’re in luck. If someone stole your credit card or forged your signature on a receipt, its use constitutes fraud. In that case, you are automatically exempt from payment under the terms of the agreement you signed with the credit card Company as long as you notify your bank in a timely fashion. Your bank will then approve your request for a chargeback and credit your account for the full amount of the transaction.