A chargeback occurs when a credit cardholder contacts their credit card-issuing bank
to initiate a refund for a purchase made on their credit card. Chargebacks arise for a
variety of reasons but generally they are the result of a cardholder changing their mind, being
dissatisfied with their purchase or a case of fraud. The fraud can result from the unauthorized
use of their credit card (stolen card) or the cardholder purposely seeking to dispute a legitimate
purchase they made (“friendly fraud”).