What does a chargeback refer to in a credit card transaction?

A chargeback refers to a situation where a credit card transaction is reversed, typically initiated by the cardholder through their bank or card issuer. This process occurs when a cardholder disputes a charge on their statement, often due to fraud, failure to receive the purchased product or service, or other reasons that justify a refund. In this context, 'A. The refund amount given when a purchase is disputed' accurately captures the essence of a chargeback as it highlights the result of the dispute process, which is a return of funds to the cardholder.

This mechanism is designed to protect consumers and can impact merchants as they may incur fees and lose revenue from returned charges. Understanding chargebacks is crucial for travel professionals as disputes can affect their business relationships and cash flow, making it important to manage transactions diligently.