A chargeback occurs when a member who previously made a payment using their credit/debit card contacts their card company and claims the payment is fraudulent. We do our best to prevent truly fraudulent transactions, but sometimes members don't remember the payment they made and request a chargeback. As a result, this will result in a fee for communities, as outlined here.

In addition, a chargeback will result in the full value of the original charge being refunded to the cardholder, at the community's expense. This includes any transaction fees that were charged during the process.

For instance, let's say community A charged a member $100 and received $97 after transaction fees were deducted. The member then issued a chargeback via their credit card company. Community A's balance will be reduced by the full $100, plus a chargeback fee will be deducted from their balance.