# Chargeback

> Understand chargebacks, how they affect creators selling digital products, and strategies to prevent and dispute them.

Canonical URL: https://crevio.co/glossary/chargeback

##  What is a Chargeback?

A chargeback occurs when a customer disputes a transaction with their bank or credit card company, requesting a reversal of the payment. For creators selling [digital products](/glossary/digital-product), chargebacks can result in lost revenue, additional fees, and potential account issues.

## How Chargebacks Work

1. **Customer Disputes**: Buyer contacts their bank claiming the charge is unauthorized or product not delivered
2. **Bank Investigation**: The bank initiates an investigation and temporarily reverses the charge
3. **Creator Notification**: You receive notice of the dispute with a deadline to respond
4. **Evidence Submission**: You provide documentation proving the transaction was legitimate
5. **Resolution**: The bank decides in favor of either the customer or creator

## Common Chargeback Reasons

- **Friendly Fraud**: Customer forgot the purchase or wants a free refund
- **True Fraud**: Stolen credit card used for purchase
- **Product Issues**: Customer claims product wasn't delivered or as described
- **Subscription Confusion**: Customer forgot about recurring billing
- **Family Purchases**: Unauthorized purchase by family member

## Prevention Strategies

- Use clear billing descriptors customers will recognize
- Send immediate purchase confirmation emails
- Provide easy access to products after purchase
- Offer responsive customer support for issues
- Have a clear and fair [refund policy](/glossary/refund-policy)
- Send renewal reminders before subscription charges

## Disputing Chargebacks

When you receive a chargeback, gather:
- Order confirmation and receipt
- Delivery proof (download logs, email confirmations)
- Customer communication history
- Terms of service and refund policy the customer agreed to
- IP address and device information

## Impact on Creators

- Loss of sale amount plus chargeback fees ($15-100)
- Too many chargebacks can result in account termination
- [Merchant of record](/glossary/merchant-of-record) platforms often handle disputes for you
- High chargeback rates affect your payment processing eligibility