A chargeback occurs during the dispute process when a cardholder disputes charge, suspected fraudulent activity, or a payment doesn’t comply with the rules and regulations established by a payment brand, such as Visa®, MasterCard® or a debit network.
A chargeback is a charge returned to a payment card after a customer successfully Disputes an item on their account statement or transactions report. A chargeback may occur on debit cards (and the underlying bank account) or credit cards. Chargebacks can be granted to a cardholder for a variety of reasons.
If a Dispute turns into a chargeback (a demand by a credit-card provider for a retailer to make good the loss on a fraudulent or disputed transaction), Paystand charges a flat $35 fee.