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) if a payment is deemed unauthorized, incorrect, 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 result in a Comerciante having to pay higher transaction fees or, in the worst case, losing card acceptance.
Common reasons for chargebacks include: fraud (stolen card details), goods not delivered, goods differing from the description, duplicate billing, or an unauthorized 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 in 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 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 debits.
What does a chargeback cost the Comerciante?
In addition to losing the transaction amount, the Comerciante pays a chargeback fee, typically EUR 20–50 per case. High chargeback rates can lead to additional penalties or higher transaction fees.
How can I as a Comerciante avoid chargebacks?
Use 3-D Secure for card verification, deliver goods with tracking and tracing, describe products correctly, respond quickly to customer inquiries, and offer a transparent return policy.
How long can a chargeback be submitted?
With Visa and Mastercard, a chargeback can generally be filed up to 120 days after the transaction. For specific reasons (e.g. fraud), the time limit 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 evidence — such as proof of delivery, communication logs, or 3-D Secure protocols — to dispute the chargeback.
