Quick answer
A chargeback is when your card issuer reverses a card payment by pulling the money back from the merchant through the card network. Visa describes a dispute as a way for an issuer to return a contested transaction; if valid, the amount is taken from the merchant's account[1].
Key points
- A chargeback reverses a card payment after it has been made, through the card network rather than by the merchant choosing to refund.
- Visa groups disputes into four categories: fraud, authorization, processing errors and consumer disputes.
- In the US, a credit card billing-error notice must be sent within 60 days after the statement showing the error.
- Merchants can respond with evidence, so a chargeback is a process with steps and deadlines, not an automatic refund.
On this page
#How does a chargeback work?
You tell your card issuer (your bank or card company) about a problem. The issuer investigates and, if the claim fits the network's rules, sends a dispute to the merchant's acquirer, which debits the merchant's account. Visa's merchant guidelines describe a dispute as a way for an issuer to return a contested transaction, with each step in the cycle having a defined time limit[1]. The merchant can accept the dispute or reply with evidence. It is the reverse of the normal card payment journey.
#What can you dispute?
Visa sorts disputes into four categories: fraud (you did not make the payment), authorization (problems with how approval was obtained), processing errors (for example being charged twice or the wrong amount) and consumer disputes (for example goods not received or not as described)[1]. In the US, the law adds its own rights for credit cards: billing errors include charges for goods not accepted or not delivered as agreed, and you must send written notice within 60 days after the statement showing the error was sent[2].
Worked example
Example
Your credit card statement shows $480, including an $80 order that never arrived. You contact the shop, get no answer, and send your issuer a written billing-error notice within 60 days. Under Regulation Z you need not pay the disputed portion while it is investigated[2], so the undisputed amount is $400 (calculated with code). If the issuer agrees, it takes the $80 back from the merchant through a chargeback.
- Statement balance
- $480
- Disputed charge
- $80
- Undisputed amount
- $400
#Is a chargeback the same as a refund?
No. A refund is the merchant choosing to give money back. A chargeback is your issuer forcing the reversal through network rules, usually after the merchant has not fixed the problem. Chargebacks exist for card payments; push payments such as bank transfers and instant payments do not have the same mechanism. Merchants pay interchange and other fees on the original sale, and disputes create extra work for them, which is why many prefer to refund first.
Frequently asked questions
How long do I have to request a chargeback?
Can I get a chargeback on a debit card?
Card networks run disputes for debit cards too, but legal protections differ from credit cards, so contact your issuer as soon as you spot the problem.
Does a chargeback hurt the merchant?
The merchant loses the payment if the dispute succeeds and must spend time responding, so merchants have a reason to solve problems before they become disputes.
Sources
- Dispute Management Guidelines for Visa Merchants (June 2024) — Visa, 2024 Primary
- 12 CFR 1026.13 — Billing error resolution — eCFR (US Code of Federal Regulations), 2026 Primary
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