What Is a Chargeback?

If you are unfamiliar with the term, your question will sound like, “What is a credit card chargeback?” or “What are chargebacks?” or “What does ‘chargeback’ mean?” Even if you think you know, you still might ask, “How do they work?” or “Is there a credit card chargeback time limit?” or “How to file a chargeback?” You start a regulated and monitored transaction every time you use a credit card or debit card. Your transactions are regulated by the terms and conditions that Visa and Mastercard adopted and made public if it is one of their cards. The rights and responsibilities of users, banks, and merchants are outlined in these terms and conditions.

You can ask your bank to cancel the charges, for instance, if your card was lost or stolen and you noticed a strange transaction on your account. In order to safeguard you from fraud, Visa, and Mastercard need your bank to take that action. You are protected even if you voluntarily make a transaction in case it doesn't happen, or you get something different from what was promised.