What is Chargeback?

A chargeback is when a customer disputes a card payment with their bank and the money is pulled back from the seller, usually with a dispute fee.

Example

A buyer says an order never arrived and their bank reverses the $60 payment, plus a dispute fee to you.

Why it matters

Clear policies, tracking numbers and fast support are your best defence against chargebacks.

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Question

What is chargeback?

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Answer

A chargeback is when a customer disputes a card payment with their bank and the money is pulled back from the seller, usually with a dispute fee.

Related terms

Payment processing fee

A payment processing fee is what a payment provider (Stripe, PayPal, Square, Shopify Payments) charges to accept a card payment — usually a percentage plus a fixed amount.

Read more in our guide: PayPal Fees for Business (2026) — and How Much to Charge