Payments language demystified.

A reversal of funds initiated by the card issuer due to a transaction dispute, fraud, or processing error. Chargebacks protect consumers but can impact merchants’ revenue and reputation, making proactive chargeback management crucial for maintaining compliance and reducing fees. Businesses can improve chargeback rates by detecting and blocking fraudulent transactions through Finix. This entails a chargeback fee which is assessed to a merchant when a chargeback occurs, covering administrative efforts for dispute resolution, fraud investigation, and operational adjustments. Effective payment platforms help minimize chargebacks and associated fees by ensuring real-time fraud detection.