A chargeback occurs when a customer disputes a charge on their credit card statement and the funds are returned to the customer's account. Chargebacks can happen for various reasons such as fraudulent transactions, disputed goods, or services that were not delivered or were defective. The chargeback process involves the customer contacting their bank or credit card issuer to dispute the charge, and the bank or issuer initiates an investigation. The merchant then has an opportunity to provide evidence supporting the original charge. If the dispute is found to be valid, the merchant may be required to refund the amount of the charge and may also be assessed fees and penalties. It is important for merchants to work with their customers to resolve disputes before they escalate to chargebacks, as chargebacks can have a negative impact on a business's reputation and financial health.