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Operations · Glossary

Chargeback

A chargeback is a forced reversal of a card transaction initiated by the cardholder's issuing bank, usually because of a customer dispute, fraud claim, or processing error. Each chargeback costs the merchant the transaction amount plus a fee of $15-100.

Why this matters to merchants

Chargebacksits inside the broader system of U.S. payment processing economics that determine a merchant’s effective rate. Most operators encounter this term on their merchant statement without understanding what it controls, which is how the four hidden fees covered by our methodology slip past unnoticed.

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