Chargeback
A reversal of a card payment forced by the cardholder’s bank, which takes the money back from the merchant and usually adds a fee.
A chargeback happens when a customer disputes a card charge with the card issuer and the issuer pulls the funds back from the merchant’s payment processor. The merchant loses the sale amount and usually pays a chargeback fee on top: $20 on PayPal card payments processed outside the buyer’s PayPal account.
A chargeback is different from a refund the merchant chooses to give. The processing fee paid to receive the original payment is generally not returned in either case. Merchants can respond with evidence, but they should price a small share of disputed sales into their margins.
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