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What is a credit card chargeback? It’s a process by which the merchant returns money to the payer after a transaction has been completed. This is particularly important for online purchases. The purpose of a chargeback is to avoid fraud and ensure that consumers receive the best possible experience when shopping online. Here are some of the benefits of credit card chargebacks. Also, learn what a chargeback is and how to avoid it.

A chargeback is initiated by the cardholder, who then contacts the issuing bank to request a refund. The merchant then has a few days to respond and resolve the issue, though it may take several months. A merchant should keep in mind that the process may damage their credit rating and may result in a provisional refund. After several weeks, a full refund is usually received. However, the process can be lengthy. The benefits of credit card chargebacks are many, and the costs are minimal.

Another advantage of credit card chargebacks is that they save time for both the merchant and the issuing bank. While a chargeback can be a costly process, it does not require a lot of resources. The process takes several days and involves multiple parties. The merchant can either accept the chargeback or fight it through representation. If the chargeback is approved, the bank will send the dispute back to the issuing bank. In some cases, the merchant is not required to pay the fee because it has a high risk of fraud or other fraud.