When a customer disputes a charge, the card issuer can reverse it. Your processor takes the amount back from your deposits or account, usually with a chargeback fee, and you can respond with evidence such as receipts, delivery records or signed agreements.
Chargebacks show up on processing and bank statements, and funders notice them. A high chargeback rate points to disputes or fraud and can put your merchant account at risk, which also threatens any advance collected through split funding.
Clear billing descriptors, written refund policies, delivery confirmation and quick answers to complaints all reduce them. Respond to every chargeback notice before its deadline, even the small ones.