In short, a chargeback is when a cardholder disputes a charge with their card issuer. The card issuer then contacts the acquirer (which in this case is Shopify Payments) to reverse the transaction. This means that the funds from the transaction are withdrawn from your bank account and given back to the cardholder.
There are a few reasons why a cardholder might file a chargeback. Some examples are if they didn’t receive their order, if the order was significantly different than advertised, if they’re questioning a recurring payment, or if they believe that a transaction was made fraudulently.
If you receive a chargeback, you’ll be notified by email and given the option to respond to it. You can do this by providing information that supports your case, such as order details, shipping information, or customer correspondence. The more information you can provide, the better your chances are of winning the chargeback.
If you win the chargeback, the funds will be returned to your shop. If you lose, the funds will be taken from your bank account, and you’ll also be charged a $15 fee.