ArgonDigital - enterprise automation experts

A chargeback can happen when a customer disputes a financial transaction related to the sale of a good or service from a merchant. In this scenario, the bank that issued the payment method to the customer will hold funds from the merchant until a decision can be made about the dispute. If the bank finds that the dispute is valid, the funds will be credited back to the customer. Otherwise, those funds will be released to the merchant. Chargebacks can cost merchants time and money as they often need to be very involved in the dispute process. Merchants can implement processes (like fraud detection) into their purchasing flow to help minimize chargebacks.