A chargeback is a protective measure credit card issuers offer cardholders, which enables the cardholder to dispute a charge. Chargeback policies exist to protect the customer, but, when abused, can cause a wide range of problems for merchants, including the loss of money, resources, time and the customer.
Chargebacks can be the result of technical errors: For example, the buyer may have been charged twice for the same transaction, or they never received the purchased item. Other times, customers may demand chargebacks if their credit cards were actually compromised by credit card fraud.
Some industries, such as travel, gaming and hospitality, are defined as high risk due to the large incidence of chargebacks in these sectors.