As the word strongly suggests, “Chargeback” pertains to a return of money to a payer of a specific transaction, especially with transactions done with a credit card. This is basically a demand lodged by a credit card provider from a retailer that it makes good on the loss on a disputed or a fraudulent transaction. Chargebacks are done through the reversal of the said payment or money transfer after being authorized.
Chargebacks may also happen in the distribution industry. This kind of chargeback happens when a supplier sells a product at a higher price to the distributor compared to the price it was originally set for the end user. Chargebacks are filed through submission of intent to the supplier so that the money lost from the transaction may be recovered.