A chargeback is one stage within the dispute lifecycle. A dispute reaches the chargeback stage when either:
- The merchant was not able to fulfill the retrieval request in full or on time during the inquiry stage
- The issuer filed the dispute without sending a retrieval request to the merchant
When a dispute is filed, it will initiate what is known as a "chargeback." This is a transaction reversal meant to serve as a form of consumer protection from fraudulent activity committed by both merchants and individuals.
Please note chargebacks are merely an action that takes place in the dispute lifecycle, and disputes are what causes this action and are subject to be challenged in representment.