What does the term "chargeback" refer to?

The term "chargeback" refers specifically to a payment that is returned to a customer after a dispute arises regarding a transaction. This process typically occurs when a cardholder contacts their bank or credit card issuer to contest a charge they believe is erroneous, fraudulent, or not delivered as promised. The bank then reverses the transaction, returning the funds to the customer and debiting the merchant's account.

This mechanism serves as a protection for consumers, allowing them to seek refunds for unsatisfactory services or unauthorized transactions. It's an essential concept in the realm of credit card processing and transactions, ensuring that customers have recourse when dealing with potential issues. Understanding chargebacks is crucial for travel professionals, as it impacts not only customer satisfaction but also the financial health of the business through potential losses.