What is a CHARGE BACK?

The process of taking back, or debiting, the merchant’s credit card funds after the funds have been paid to the merchant. This is different from a refund! A refund is simply a sale that is being credited back to the cardholder whereas a chargeback occurs when a customer bypasses the merchant and disputes a transaction directly with the credit card company. The merchant must formally respond to each chargeback with proof that the product or service was provided to the customer.