Chargebacks explained · checked 30 October 2026
What is a chargeback?
A chargeback is when your card issuer reverses a card payment and pulls the money back from the merchant's bank. It's the card networks' safety net for fraud, goods that never arrived, items not as described, and refunds that were promised but never paid.
How it works
- You dispute the charge with your bank or card issuer, giving a reason.
- The issuer often credits you provisionally while it investigates.
- The merchant is told and can accept or fight it with evidence such as tracking or signed terms.
- The issuer decides. If the merchant wins, the provisional credit can be reversed.
Chargeback vs dispute
- A dispute is what you raise: a complaint about a charge, with your bank or with a platform like PayPal.
- A chargeback is one possible result: the card network moving the money back. A PayPal dispute, for example, is handled by PayPal and isn't a chargeback unless you go to your card company. PayPal dispute vs chargeback.
Who loses money on a chargeback?
Usually the merchant. They lose the sale, often the goods too, and pay a chargeback fee to their payment processor whether or not they win. Chargeback fees by processor. The bank only carries the loss in narrow cases, such as when it can't recover the money from the merchant.
Are chargebacks usually successful?
There's no single official success rate. Your odds are best when you contacted the merchant first, you're inside the time limit, and your proof matches the reason code: tracking that shows non-delivery, photos of a damaged item, or a cancellation confirmation. Chargeback time limits.
Are chargebacks illegal?
No. Asking your card issuer to reverse a charge is a normal right under card network rules, and in the US the Fair Credit Billing Act protects credit card billing disputes. What can get you in trouble is a false claim, such as saying you never got an item you received and kept. Merchants can contest it with proof, and a business that wins can still chase you for the money or close your account.
Need one?
Our free tool picks the right route for your card and country, shows your deadline and writes the letter: get a card refund. Selling and received one? Build your response pack.
Disputing a charge yourself? Get your deadline and a free dispute letter.
Related: how to ask for a refund first · fraud chargebacks. General guidance, not legal advice. Read 30 October 2026.