Chargeback
A chargeback is the reversal of a card payment initiated by the cardholder or their bank — for example, in cases of fraud, non-delivery or incorrect debiting.
Chargeback
A chargeback is a mechanism in card payment transactions that allows cardholders to reverse a transaction. The process is initiated by the cardholder or their bank (issuer) when a payment is deemed unauthorised, erroneous or fraudulent.
For Comerciantes, a chargeback means not only the loss of the transaction amount, but also a chargeback fee (typically EUR 20–50 per case). Too many chargebacks can lead to a Comerciante having to pay higher transaction fees or, in the worst-case scenario, losing card acceptance.
Common reasons for chargebacks include: fraud (stolen card details), goods not delivered, goods differing from the description, duplicate billing or an unauthorised purchase. Comerciantes can reduce chargebacks through clear product descriptions, proof of delivery, 3-D Secure and a transparent return policy.
Chargeback examples
A cardholder notices an unknown charge and reports it to their bank. The bank initiates a chargeback.
A customer orders goods from an online shop but never receives them. They contact their bank and request a chargeback.
A Comerciante receives a chargeback notification and must submit proof of delivery as evidence within 14 days.
Chargeback FAQ
What is a chargeback?
A chargeback is the reversal of a card payment initiated by the cardholder or their bank. Reasons can include fraud, non-delivery or incorrect charges.
How much does a chargeback cost the Comerciante?
In addition to losing the transaction amount, the Comerciante pays a chargeback fee of typically EUR 20–50 per case. With high chargeback rates, additional penalties or higher transaction fees may apply.
How can I as a Comerciante avoid chargebacks?
Use 3-D Secure for card verification, deliver goods with tracking and tracing, describe products accurately, respond quickly to customer inquiries, and offer a transparent return policy.
How long can a chargeback be submitted for?
With Visa and Mastercard, a chargeback can generally be submitted up to 120 days after the transaction. For certain reasons (e.g. fraud), the period can be extended up to 540 days.
As a Comerciante, can I dispute a chargeback?
Yes, in the so-called representment process, you can submit documents — such as proof of delivery, communication logs or 3-D Secure protocols — to dispute the chargeback.
