§ Money Road

Chargeback

also called dispute · card charge dispute

Asking your card issuer to reverse a transaction after a billing problem, non-delivery, or fraud claim.

3-D SecureChip-and-PINContactless paymentChargeback
Solid lines are terms people actually mix up with Chargeback. The rest sit in the same subject, how a card payment is approved. 3-D Secure · Chip-and-PIN · Contactless payment

Right, in plain English

A chargeback is you going over a seller's head and asking your card company to claw back a payment, for fraud, a service that never arrived, or a billing mess. It is different from a refund, where the seller agrees and sends your money back; a chargeback is forced on them. It is a real protection, but leaning on it too often can make your bank see you as trouble.

A booking site charges you for a villa that turns out not to exist and then stops replying. You ask your card issuer to reverse the charge, and because the merchant never delivered, the bank pulls the money back rather than you chasing a company that has gone quiet.

Why it matters

Useful against shady booking sites, but abusing it can close accounts you need while living abroad.

Not to be confused with

The difference is the whole point, so here is each one in a line.

How a card payment is approved · 4 terms

These are the ways a card proves it is you and undoes a bad charge.
Chip-and-PIN authenticates in person with a chip and number, contactless pays by tapping within a limit, and 3-D Secure is the extra online step many foreign sites demand before accepting a card.
A chargeback is asking your issuer to reverse a transaction after fraud, non-delivery or a billing problem.

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