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Payments & chargebacksAffiliate glossary

What is Chargeback dispute?

When a customer files a chargeback, the merchant can accept it or fight it. Fighting it is called representment: the merchant sends proof through its payment processor to the customer’s bank.

Useful evidence includes the order and delivery confirmation, IP address and device data, login and usage logs, the accepted terms and refund policy, and any email exchange with the customer. The issuing bank reviews it and either returns the money to the merchant or keeps the chargeback in place. If both sides keep disagreeing, the card network can make the final decision (arbitration), usually for an extra fee.

Every step has strict deadlines set by the card networks, and missing one means losing the case automatically. Clear billing descriptors and easy refunds prevent many disputes before they start.

Related terms

Chargeback
A chargeback is a forced reversal of a card payment, started by the cardholder’s bank after the customer disputes the charge.
Chargeback fee
A chargeback fee is the charge a payment processor or bank bills the merchant for handling each chargeback, on top of the reversed payment.
Payment processor
A payment processor is the company that handles card and other online payments for a merchant, moving money between the customer’s bank and the merchant’s account.