A forced reversal of a card payment initiated by the buyer's bank, returning funds to the customer and often charging the seller a fee.
A chargeback is when a buyer disputes a card payment with their bank and the bank claws the money back from the seller — often with an added fee. It exists to protect cardholders from fraud, but it can also be used, fairly or not, by unhappy clients.
For sellers, a chargeback can undo a payment you already spent weeks earning. Your defense is documentation: a signed contract, a clear statement of work, records of delivered deliverables, and written client approval. Vague agreements lose disputes. For buyers, a chargeback is a last resort, not a refund shortcut — abusing it can get your account flagged and burns the relationship permanently.
The best protection is preventing the dispute in the first place: clear scope, regular check-ins, and a written cancellation policy so disagreements get resolved directly. For high-value work where you’re worried about reversals, holding funds in escrow or taking non-reversible payment sidesteps the risk entirely.