Okuzeka
Finance & Banking vocabulary · Payments & Cards

Chargeback

Meaning in finance & banking, with examples

/ˈtʃɑːrdʒbæk/nounCommon term

In finance & banking, chargeback means: The reversal of a card payment after the cardholder disputes it, for example because of fraud or goods that never arrived. The money is taken back from the merchant.

In Turkish: ters ibraz, harcama itirazı

How it is used

Used in card operations, disputes and merchant services. A cardholder raises a dispute, the issuing bank starts a chargeback under the card scheme's rules, and the merchant can challenge it. A high chargeback rate can bring merchants extra fees.

Example sentences

  1. The customer never received the order, so we raised a chargeback with the merchant's bank.

  2. Online shops with too many chargebacks may lose their payment account.

Common collocations

  • raise a chargeback
  • chargeback rate
  • chargeback dispute
  • chargeback fee
  • merchantA business that accepts card or digital payments from customers for goods or services, such as a shop, restaurant or online store.
  • fraudDeceiving someone to get money or another advantage illegally, such as using stolen card details or opening an account with a fake identity.
  • credit cardA plastic or digital card that lets you buy now and pay the bank later. You can spend up to a limit and pay interest if you do not repay the full amount on time.
  • transactionA single movement of money, such as a payment, transfer, deposit or withdrawal, recorded on an account or card.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Payments & Cards

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This page explains English vocabulary for learners. It is not financial advice.