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What is a chargeback and how do I prevent chargebacks?

A chargeback is when a customer disputes a card charge with their bank and the funds are pulled back from you. You prevent most chargebacks with clear billing descriptors, good receipts, fast customer service, and keeping proof of delivery or signatures.

A chargeback happens when a cardholder asks their issuing bank to reverse a charge — for fraud, a product issue, or simply not recognizing the transaction. The money (plus a fee) comes out of your account while it's investigated.

Most chargebacks are preventable. The big levers: use a clear billing descriptor so customers recognize the charge, give itemized receipts, respond to customers fast before they call the bank, and keep records — signatures, tracking numbers, delivery confirmation.

Velocity sets up tools and best practices to reduce disputes, and helps you respond with the right evidence when one does happen.

Frequently asked

Unrecognized descriptors, slow or poor customer service, and “item not received” disputes. Clear billing and fast support prevent most of them.
Yes — you can represent the charge with evidence like receipts, signatures, and delivery confirmation. Velocity helps you respond.
Usually there's a chargeback fee plus the lost sale, and too many can put your account at risk — which is why prevention matters.
Fix your billing descriptor, add itemized receipts, and answer customers quickly. Those three changes cut most disputes.

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