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Chargeback glossary

Short definitions of the chargeback and dispute management terms used across Disputeur.

Automated dispute management

Automated dispute management uses software to simplify repetitive tasks associated with payment disputes. It can help merchants organize dispute information, monitor case statuses and manage alerts without switching between multiple tools.

Chargeback alert

A chargeback alert notifies a merchant about an eligible payment dispute, allowing the team to review the transaction and determine which resolution options are available before the dispute progresses.

Chargeback alert service

A chargeback alert service helps merchants receive and manage notifications about potential payment disputes. Disputeur centralizes incoming alert information and available processing statuses to support dispute monitoring.

Chargeback analytics

Chargeback analytics is the process of reviewing payment dispute data to understand dispute activity, identify trends, and support informed business decisions.

Chargeback automation

Chargeback automation helps merchants reduce manual work by simplifying dispute-related processes, including receiving alerts, organizing case information and tracking dispute progress.

Chargeback management integrations

Chargeback management integrations connect Disputeur with payment services and other business systems. They help you bring relevant dispute information into a centralized workflow, depending on the capabilities of each provider.

Chargeback management software

Chargeback management software helps merchants monitor, organize and manage payment disputes from one centralized platform.

Chargeback prevention

Chargeback prevention is the process of identifying and addressing payment disputes before they become chargebacks whenever possible.

Chargeback reporting

Chargeback reporting presents dispute-related information in a structured format, such as counts, statuses, amounts, and trends over a selected period.

Chargeback vs. refund

While refunds typically require the return of purchased items for a money-back guarantee, chargebacks involve cardholders seeking bank intervention to bypass merchants. Successful chargeback disputes result in merchants losing revenue and merchandise value and additional costs like shipping and interchange fees. Merchants also incur administrative fees for each chargeback.

Friendly fraud

Friendly fraud occurs when a legitimate customer disputes a valid transaction, sometimes because they do not recognize the purchase, forget a subscription, misunderstand a billing descriptor or incorrectly claim that a product or service was not received.

High-risk merchant account

A high-risk merchant account, tailored for businesses in high-risk sectors, enables card payments but with stricter conditions and higher costs than standard accounts. Processors categorize merchants based on their financial risk, especially susceptibility to fraud and chargebacks.

Reason code

A chargeback reason code is an alphanumeric code ranging from 2 to 4 digits issued by the bank responsible for a chargeback. Its purpose is to pinpoint the cause of the dispute. Major card brands such as Visa and Mastercard maintain their distinct sets of reason codes.

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