# What are Chargebacks? A chargeback is a forced reversal started by the customer’s bank (the issuer) after the customer disputes a card charge. The bank pulls the funds back through the card network, and your acquiring bank and processor pass that debit to you. Most of the time, you also get hit with a **chargeback fee** that may not be returned even if you win. #### **Why chargebacks happen** * True fraud: The cardholder didn’t authorize the purchase. * First‑party misuse: The cardholder authorized but disputes it later. * Merchant error: Processing mistakes, fulfillment issues, unclear policies, or duplicate charges. #### **Chargeback Lifecycle** Most cases follow a similar path: inquiry or pre‑dispute (some networks request more details that can deflect a case), first chargeback with a reason code and provisional debit, representment where you submit order, delivery, and policy evidence, then if either side continues pre‑arbitration and arbitration. Timelines and naming vary by network and processor, but response windows are short, often days, not weeks. #### **Why this matters** Chargebacks impact revenue, compliance, and workload. Beyond product cost and shipping, you pay dispute fees and spend staff time on evidence. Card networks monitor your chargeback ratio; exceeding thresholds can place you in monitoring programs with added scrutiny and costs. Confusing descriptors and hard‑to-use policies also drive avoidable disputes. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.chargebase.co/chargebacks-knowledge-base/what-are-chargebacks.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.