There are times when an individual may want to dispute a transaction they have made. If it is successful, then the amount that is reverted back to the payment account is called a chargeback. It is a refund processed to the cardholder from which the disputed transaction was made.
Chargebacks can range from a simple refund for a returned item purchased via a merchant or for a fraudulent transaction made through your bank account or credit card.
Points to remember:
Example: If you purchased an item online that was not delivered or faulty, and the seller has not cooperated on a refund, you may contact your bank to raise a chargeback.