Chargeback: what it is and how it affects businesses

Chargeback is a mechanism that allows customers to dispute a payment and get their money back from their bank account or credit card. This tool is designed to protect against incorrect or fraudulent transactions, enhancing the security of online purchases.

However, chargebacks can pose a problem for businesses, leading to financial losses and negative impact on brand reputation. Persistent refunds can significantly affect the financial health, especially for small enterprises, and undermine customer trust in the company.

To mitigate the impact of chargebacks on business, it's important to provide customers with clear information about products or services, maintain high service standards, and utilize technology to prevent fraud. Such measures help companies minimize losses and ensure stable operation.