Chargebacks occur for several reasons, not limited to:
- A customer claims they paid for a product or service but didn’t receive what they were promised.
- A charge appears on the customer’s bank statement that they don’t recognize as a purchase from your store.
- There’s been fraudulent activity, like someone using the customer’s card without their permission, or an error leading to incorrect billing.
As a merchant, it's crucial to take steps to minimise these situations. This includes clear communication about what you're selling and prompt responses to resolve disputes.