Chargebacks 101
Chargebacks, step by step,
from first dispute to ratio.
Chargebacks 101 is a learning path through our free guides. Start with what a chargeback is and how a dispute moves between cardholder, bank and merchant, then learn reason codes, the evidence that answers them, how to prevent disputes, and how card networks monitor your chargeback ratio. Each step links to a deeper guide.
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1. What a chargeback is
A chargeback reverses a card payment through the cardholder's bank instead of through you. Start with the definition and the words that get mixed up with it.
Chargeback
A chargeback is a reversal of a card payment that the cardholder's issuing bank initiates after the cardholder disputes the charge, debiting the disputed amount (and usually a fee) from the merchant.
GlossaryChargeback vs dispute vs retrieval request vs inquiry
A dispute is any cardholder challenge to a payment; a chargeback is the formal reversal that debits the merchant; a retrieval request or inquiry is an earlier request for information that may or may not escalate into a chargeback.
GlossaryMerchant descriptor
A merchant descriptor (statement or billing descriptor) is the text that identifies a business on a cardholder's bank or card statement for each charge.
GlossaryFull glossary
Plain-English definitions of chargeback and fraud terms: representment, compelling evidence 3.0, RDR, Ethoca, CDRN, 3DS liability shift, AVS, CVV and more.
2. How a dispute moves
Once a cardholder disputes, the bank, the card network and you each get a turn, with deadlines at every stage. These explain the stages after the first chargeback.
Representment
Representment is the merchant's formal response to a chargeback, in which it submits evidence through its acquirer or processor asking the issuing bank to reverse the chargeback.
GlossaryPre-arbitration and arbitration
Pre-arbitration is the stage after representment where the issuer or acquirer challenges the first decision once more; arbitration is the final stage where the card network itself rules on liability, usually with a filing fee charged to the loser.
Glossary3-D Secure liability shift
The 3-D Secure liability shift is the card network rule under which, for an online payment successfully authenticated with 3-D Secure, liability for a later fraud chargeback typically moves from the merchant to the card issuer.
3. Reason codes
Every chargeback carries a reason code, and the code decides what evidence can win. Find your network, then your code.
All reason codes
Visa, Mastercard, American Express and Discover in one reference.
VisaVisa reason codes
Every current Visa dispute condition from 10.1 to 13.9, with time limits, the evidence that wins and when to accept. Checked against the 2026 Visa Rules.
MastercardMastercard reason codes
Current Mastercard chargeback codes (4808, 4834, 4837, 4853 and more), which legacy codes now map elsewhere, time frames and the evidence each one needs.
American ExpressAmerican Express reason codes
Every current American Express chargeback reason code (A, C, F, FR, M, P, R) with what it means, the evidence that answers it and how to prevent it.
DiscoverDiscover reason codes
Discover chargeback reason codes (UA01, UA02, RG, RM, AP, RN2 and more): what each means, the evidence that answers it and how to avoid it.
4. Evidence that answers a dispute
Winning comes down to records that answer the cardholder's claim. These guides cover the rules and the common dispute types merchants face.
Visa Compelling Evidence 3.0 (CE 3.0)
Visa Compelling Evidence 3.0 is a Visa dispute rule, effective for disputes submitted on or after 15 April 2023, that shifts liability for a card-absent fraud dispute (reason code 10.4) back to the issuer when the merchant shows two qualifying prior undisputed transactions from the same cardholder.
GuideFriendly fraud
Friendly fraud is a customer disputing a purchase they made. Learn the warning signs, the evidence that wins, and how Visa CE 3.0 helps merchants.
GuideItem not received chargebacks
Answer item not received chargebacks with carrier scans, address matches and customer messages. A step-by-step guide for Visa 13.1 and Mastercard disputes.
GuideSubscription and SaaS chargebacks
Cut subscription and SaaS chargebacks: Visa trial rules, renewal reminders, easy cancellation and the cancellation evidence that answers 13.2 disputes.
5. Preventing chargebacks
The cheapest chargeback is the one that never happens: stop fraud before you ship, and settle a complaint before it becomes a dispute.
How to prevent chargebacks
Prevent chargebacks before they cost you: screen orders, fix descriptors, refund early warnings and prove delivery. A practical guide for online merchants.
GuideShopify fraud detection
Go beyond Shopify's built-in fraud analysis: risk scores with plain-English reasons, IP and device signals, blocklists and holds before you fulfill.
GuideRefund abuse and refund fraud
Spot refund abuse before it eats your margin: serial returners, wardrobing, false not-received claims and empty boxes. Signals, policy tips and evidence.
GlossaryEarly fraud warning (TC40 / SAFE)
An early fraud warning is a notice, derived from issuer fraud reports such as Visa TC40 and Mastercard SAFE, that a card payment has been reported as fraudulent, often before any chargeback is filed.
GlossaryRapid Dispute Resolution (Visa RDR)
Rapid Dispute Resolution (RDR) is a Visa pre-dispute service operated by Verifi that automatically resolves a cardholder's dispute with a refund, based on rules the merchant sets in advance, before it becomes a chargeback.
GlossaryEthoca Alerts
Ethoca Alerts is a Mastercard service that shares confirmed-fraud and customer-dispute data from card issuers with merchants in near real time, so the merchant can stop fulfillment or refund before a chargeback is filed.
GlossaryCDRN (Cardholder Dispute Resolution Network)
The Cardholder Dispute Resolution Network (CDRN) is a Verifi service through which participating card issuers send pre-dispute cases to merchants, who can stop a chargeback by issuing a refund within a set window.
GlossaryCard testing
Card testing is a fraud attack in which criminals use a merchant's checkout or card-saving flow, usually with automated scripts, to find out which stolen or generated card details are valid before using or selling them.
6. Ratios, monitoring and cost
Card networks watch your chargeback ratio, and crossing their thresholds brings fines and higher fees. Know your numbers and what disputes really cost.
Chargeback ratio thresholds
How Visa VAMP and Mastercard ECM/HECM calculate your chargeback ratio, the 2026 thresholds by region, and how to stay under them. Sourced and dated.
GuideChargeback protection
High-risk merchants live close to card-network limits. Keep disputes down, answer every winnable case and stay off MATCH, with honest help from Verdikx.
CalculatorChargeback fee calculator
Calculate what chargebacks really cost: fees, lost sales and staff time, your dispute ratio against Visa and Mastercard thresholds, and prevention savings.
Pricing guideChargeback software pricing
How chargeback software is priced: success fees, per-dispute fees, subscriptions and percentage-of-sales guarantees, with sourced examples and costs at four volumes.
Keep going
More guides for specific problems, and every free resource in one place.
Chargebacks 101 for ecom (PDF)
What a chargeback is, the three losses it costs an ecom store, the two deadlines, who decides (the bank) and what to do when one lands. Free PDF guide.
Free PDFsAll free guides
Three free chargeback guides for ecom stores: the evidence checklist by reason code, Chargebacks 101 and your chargeback ratio explained. Read online or as PDFs.
GuidesUse cases
Guides to friendly fraud, refund abuse, subscription chargebacks and more.
ResourcesAll resources
Free chargeback tools and references: ratio, time-limit, fee and VAMP calculators, Visa, Mastercard, Amex and Discover reason codes, and a payments-risk glossary.
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