What is the meaning of the term 'chargeback'?

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2026-05-17 23:16

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Chargebacks on credit cards are one of the most common problems that online companies face when accepting digital payments. The chargeback mechanism was created by card issuers to address potential conflicts between merchants and cardholders.

Customers file chargeback claims for a variety of reasons, including fraudulent use of credit cards, faulty or broken goods, poor customer service, duplicate payments, and so on. Of course, some of these assertions are true, but many con artists are abusing their position of power.

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