What is a chargeback?

A chargeback is a process that allows customers to dispute charges made to their payment methods, typically in cases where they believe the charge is incorrect or fraudulent. This process acts as a consumer protection mechanism, enabling customers to challenge a transaction and potentially recover funds they feel were unjustly taken.

In the context of financial transactions, if a customer notices an unauthorized or erroneous charge—such as not recognizing a transaction, being billed for something not received, or being charged a different amount than agreed upon—they can initiate a chargeback with their credit card issuer or bank. This process involves the issuer investigating the claim and potentially reversing the charge if the dispute is found to be valid.

As for the other options, a method for issuing refunds is distinct from chargebacks, as refunds are typically initiated by the merchant or service provider after a customer requests them. A request for additional charges on previous rentals does not fall under the definition of chargebacks, which focus on disputed charges rather than additional authorized transactions. Lastly, a charge made without customer consent might contribute to a chargeback but does not define the process itself; it represents a scenario that could lead to one.