The return of funds to a customer through a process that is forcibly begun by the customer’s issuing bank. It involves the reversal of a previously authorized charge through a credit card, bank account or line of credit. Charge backs can occur for a variety of reasons, including customer disputes, potential or actual fraud (on the part of merchant, sales associate and/or customer), processing errors, and authorization issues. Merchants are typically assessed fees by the bank for charge backs.

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