Chargeback
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Chargeback
A chargeback is a process where a customer directly approaches their bank or card issuer to invalidate a transaction. This could be due to unauthorized transactions, fraud, or if the product or service was not provided as promised in terms of quality or delivery. Chargebacks serve as consumer protection and can result in additional fines for the merchant.
They play a critical role in building consumer trust in electronic commerce by providing a mechanism for recourse in case of disputes. While chargebacks offer protection for consumers, merchants must manage them effectively to minimize financial losses and maintain a positive relationship with payment processors and banks.