Chargebacks happen when a cardholder disputes a credit card purchase. There are a variety of reasons a cardholder may dispute a charge. Some of reasons can include:
-
Never receiving the item ordered
- Their credit card was double-charged
- Not getting what they thought they were buying
- Their credit card was stolen and they did not authorize the charge
- They could just be crooks and use the chargeback clause to their advantage
In the event of a chargeback, the card-issuing banks will initiate a chargeback against the online merchant.
The funds for that sale are pulled from the merchant's bank account and the merchant may or may not be notified of the chargeback and be given the opportunity to dispute the chargeback.
