The Chargeback Cycle encapsulates the complete process involved in disputing, reviewing, and resolving a chargeback request. This cycle commences when a cardholder lodges a transaction dispute with their card issuer and concludes when a final resolution has been determined.
The cycle encompasses several stages, including the following:
initial dispute filing
the merchant’s response or rebuttal
the card issuer’s examination of the dispute
the concluding decision on the matter
Depending on the intricacies of the dispute and the responsiveness of the involved parties, a chargeback cycle could last from a few weeks to several months to reach a resolution.
Consequently, the chargeback cycle demands careful management to mitigate potential financial and reputational damage for the businesses involved.