Why do chargebacks happen?
Chargebacks happen when a consumer or cardholder files a complaint with the card’s issuing bank claiming incorrect or fraudulent charges that have not been rectified by the merchant. After a consumer files a complaint with their credit card company an investigation, required by law, is performed. If the charge is determined to be incorrect or fraudulent, the charge is credited to the cardholder’s account. Often consumers go directly to their credit card company to request a chargeback before attempting to rectify the situation directly with the merchant.