A reversal of a chargeback, also known as a chargeback reversal, refers to the process in which a merchant disputes a chargeback and attempts to recover the funds that were originally debited from their account. When a customer initiates a chargeback, the cardholder's bank or credit card issuer investigates the claim and may temporarily refund the disputed amount to the customer.
In response, the merchant can choose to challenge the chargeback by providing evidence and documentation to support their case. This evidence may include transaction records, proof of delivery, customer communication, or any other relevant information that demonstrates the legitimacy of the original transaction. The merchant submits this evidence to their payment processor or acquirer, who then presents it to the cardholder's bank for review.
If the evidence provided by the merchant is deemed compelling and supports the legitimacy of the transaction, the chargeback may be reversed.