Chargeback
A chargeback reverses a card payment through a dispute with the card issuer. It follows a different process from a merchant-initiated refund.
What is a chargeback?
A chargeback reverses a card payment through a dispute with the card issuer. The payer contacts the institution that issued their card. A refund initiated by the service provider itself follows a different process. The reason, current case status and response deadline must be checked with the relevant payment service.
A fictional software company offers a paid project portal. In the planned data model, dispute case D-17 relates to original payment P-17, which is linked to subscription S-9. The integration stores the payment service's case reference, current case status and stated response deadline separately from the refund status. The company's example identifiers are not a prescribed provider schema.
In this design, a new status notification updates the associated case. It does not trigger an additional refund or a change to portal permissions; those actions need separate rules. The responsible person checks the procedure and required response. This separation helps distinguish payment, dispute and access entitlement; it does not determine the outcome of the dispute.
Sources
Related terms
- RefundA refund returns all or part of an amount already paid. Returning money and returning goods are separate processes.
- Payment service providerA PSP supports businesses with electronic payments. Payment methods, processing and additional services depend on the offering.
- Data mappingData mapping defines how source data enters a target structure. Field names, meaning, units and error handling all need to fit.
- Digital walletA digital wallet uses saved payment methods or a wallet balance for payment. Device support and the shop integration must work together.
- Buy now, pay laterBNPL enables a purchase with later payment or instalments. The customer’s payment plan and settlement with the merchant are considered separately.
- Pay by invoiceWhen customers pay by invoice, they receive goods or services and pay later by the agreed due date. The invoice and receipt of payment are tracked separately.
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