# What is a chargeback?

A chargeback is a card issuer reversing a payment at the cardholder's request, usually over a dispute or suspected fraud. It is not a refund: a refund is something you choose, a chargeback is imposed on you. Recovery nets against future payouts.

Source: https://fidella.app/glossary/chargeback
Last reviewed: 2026-08-30

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An unavoidable part of taking card payments, and worth understanding before it
happens rather than during.

## Not a refund

A refund is a decision you make. A chargeback is a decision made about you, by
the cardholder's bank, often months later.

## How recovery works

Chargeback debt is recovered by netting against future payouts. A merchant who
is not being paid out has no netting source, which is a limitation Fidella
records openly rather than papering over.

## Reducing them

Clear descriptions of what a voucher entitles somebody to, honest expiry terms,
and answering customers quickly. Most chargebacks start as a question nobody
answered.