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Finance · Payments
Chargebacks (Card Payments)
Reference entry · last updated 20260910
A chargeback is a debit initiated through the cardholder’s issuer in response to a disputed card payment. The disputed funds can be held while the case is resolved.[1]
1. First principles: a disputed transaction
A cardholder can contest a payment for reasons such as fraud or goods not received. The issuer handles the cardholder’s complaint through the applicable network process. A merchant can accept the dispute or submit evidence where the process allows.[1]
2. Debit and final outcome
A chargeback debit does not by itself establish the final outcome. Evidence, deadlines, reason codes, and network rules affect the result. A preliminary inquiry can also request information before a financial chargeback.[1]
3. Relationship to refunds
A refund is a merchant-initiated return of a payment. An open dispute follows its own workflow; issuing another refund can create duplicate reimbursement risk. Stripe directs merchants to resolve a disputed payment through its dispute process.[2]
4. Authentication and liability
EMV 3DS can affect fraud liability under applicable rules. Non-fraud disputes, including goods not received, can still proceed after authentication.[3]