A chargeback is a recall of payment by the cardholder. This process occurs when a cardholder submits an objection to their bank. Following successful recall, the chargeback amount is credited to the cardholder account and the retailer is debited for the chargeback fee.
Retailers have the option of challenging this chargeback.
Required documents include proof of delivery, for example. Proof provided by retailers is passed on to the card organisation for verification.
Following the successful counterclaim by the retailer, they are recredited the chargeback amount minus the chargeback fee.