Chargebacks refer to the process of a customer disputing a transaction and requesting a refund from their bank or credit card company. This can occur when a customer believes they have been charged incorrectly, received a faulty product, or experienced fraudulent activity. Chargebacks are typically initiated by the customer, but can also be initiated by the merchant’s bank or payment processor. The chargeback process involves an investigation to determine the validity of the customer’s claim, and if approved, the funds are returned to the customer’s account. Merchants often try to prevent chargebacks by providing excellent customer service, clear communication, and resolving any issues promptly to avoid potential financial losses and damage to their reputation.