Chargeback Management and Prevention Overview A chargeback occurs when a cardholder disputes a transaction with their bank, forcing a reversal of funds and levying a fee ($15–$100 per dispute) on the merchant. A chargeback ratio above 1% (Visa) or 1.5% (Mastercard) triggers the card network's dispute monitoring programs, which can result in monthly fines and ultimately account termination. Effective chargeback management has two tracks: (1) preventing disputes with fraud scoring and clear communication, and (2) winning more disputes by submitting complete evidence within the response window.…