Quick overview
A chargeback is a consumer protection tool that forces a merchant’s bank to accept responsibility for a disputed transaction while the issuer investigates. Unlike a simple refund request to the merchant, a chargeback is initiated with the card issuer and uses card-network rules (Visa, Mastercard, American Express, Discover) and federal protections as the framework for resolution (Consumer Financial Protection Bureau; Federal rules under the Fair Credit Billing Act and Electronic Fund Transfer Act apply in related contexts).
In my work advising clients, chargebacks are most effective when the consumer documents the problem immediately and understands the timelines and evidence required by their issuer.
How the chargeback process unfolds (step-by-step)
- Report the problem to your issuer
- Contact the bank or card company that issued the card used for the purchase. Many issuers let you start the process online, by phone, or through their mobile app.
- Consumer statement and provisional credit
- The issuer may ask you to sign an affidavit or provide supporting documents (receipts, screenshots, shipping confirmation, photos of defects, merchant messages). Some issuers provide a provisional credit while they investigate.
- Issuer investigates and files with the card network
- The issuer forwards the claim to the merchant’s acquirer under a specific reason code (fraud, non-receipt, quality dispute, duplicate charge). Card networks have standardized codes and timelines that govern next steps (see Visa and Mastercard guides).
- Merchant response (representment)
- The merchant can accept the chargeback or challenge it by providing proof of delivery, refund, or that the service was provided as described. This process is called representment.
- Decision and potential escalation
- The issuer or network makes a decision. If the merchant contests successfully, the issuer can reverse the provisional credit. Unresolved disputes can go to arbitration within the card network.
Timeframes vary but many consumer disputes are expected to be filed within 60–120 days of the transaction depending on the reason and the card network’s rules (Consumer Financial Protection Bureau; card-network dispute guides).
Common chargeback reasons and examples
- Unauthorized or fraudulent transactions: Someone used your card details without permission. (If it’s a debit card, EFTA protections affect liability.)
- Non-receipt of goods or services: You paid for an item or service that was never delivered.
- Product/service materially not as described: You received a counterfeit, wrong item, or a service that failed to meet advertised standards.
- Billing errors / duplicate charges: The merchant charged you multiple times or billed for the wrong amount.
Real example from my practice: A client received a counterfeit high-end gaming console after ordering from a marketplace seller. The merchant ignored messages and refused to refund. The card issuer issued a provisional credit within two weeks; after the merchant failed to produce proof of shipment and product authenticity, the issuer upheld the chargeback and the consumer kept the credit.
What evidence helps win a chargeback
- Order confirmation emails and receipts
- Tracking and delivery information
- Photos of damaged or counterfeit items
- Communications with the merchant (screenshots of chat, emails)
- Proof of attempted returns or refunds
- Contracts, terms of service, or screenshots of product listings
Documenting everything early is the most effective step consumers can take.
Time limits and legal protections
- Card networks commonly allow disputes up to around 120 days for many transaction types, but specific reason codes and issuers differ. For unauthorized credit card charges, the Fair Credit Billing Act requires card issuers to investigate billing errors reported within 60 days of the statement date, though chargeback processes and network windows may vary (Consumer Financial Protection Bureau).
- For debit cards, the Electronic Fund Transfer Act limits liability for unauthorized transactions if reported promptly (often $50 if reported within 2 business days; higher liability if reported later, and possible unlimited liability after 60 days for certain scenarios). This is separate from chargeback rights but relevant for unauthorized charges on debit accounts (CFPB).
Always check your issuer’s dispute policies and act quickly.
Risks and downsides for consumers
- Chargebacks can be denied. If the merchant produces convincing evidence (tracking receipts, signed delivery, return records), the issuer may rule for the merchant and reverse any provisional credit.
- Repeated or frivolous disputes can flag your account with the issuer and in rare cases could lead to account or card closure.
- A chargeback may not fully cover consequential losses (time, opportunity cost), and long disputes can take weeks to months to resolve.
- If you received a partial refund from the merchant and still file a chargeback for the full amount, the issuer may require disclosure of the partial refund and may reduce the chargeback accordingly.
How chargebacks affect merchants and the overall marketplace
Merchants face chargeback fees, operational costs, and potential penalties (higher processing rates, termination of processing privileges) when chargebacks accumulate. This economy drives merchants to fight chargebacks aggressively, often through representment or by tightening return policies.
When to try the merchant first (and when to go straight to a chargeback)
- Contact the merchant first for straightforward issues: wrong size delivered, simple refunds, or seller errors where the merchant is responsive.
- Escalate to your issuer when the merchant is uncooperative, when you suspect fraud, or when the merchant refuses a valid refund. Before a chargeback, a well-documented complaint often speeds resolution and preserves evidence.
See our guide on [When to Seek a Chargeback vs a Bank Dispute](
