Chargeback: what it is and how to reduce it
A chargeback is the reversal of a card charge when the customer disputes the purchase with their bank — for fraud, dissatisfaction or non-recognition — and the amount is pulled back from the merchant.
Why chargebacks happen
It can be fraud (someone else's card), "I don't recognize this charge," or a dispute over the order. It's more common in delivery and online orders, so anti-fraud and proof of delivery matter.
- Fraud or non-recognition
- Dispute over the order/delivery
- Amount reversed from the restaurant
How to reduce chargebacks
Use a payment provider with anti-fraud (like Stripe), keep proof of delivery, and use a clear statement descriptor so customers recognize the charge.
FAQ
Is a chargeback the same as a refund?
It's a type of reversal: one initiated by the customer with the bank/card network by disputing the charge, not a voluntary merchant refund.
How do I protect against chargebacks?
Payment anti-fraud, proof of delivery and a clear statement name reduce disputes and help win them.