A ____ occurs when a financial institution must return funds to a credit card company because the card holder refuses to pay a disputed charge.
A) discount rate
B) one-time setup fee
C) chargeback
D) per-transaction fee

Question

Quizplus · Accepted Answer

A chargeback occurs when a cardholder disputes a charge on their credit card statement and the issuing bank requires the merchant to return the funds for the transaction. This happens when the merchant is unable to provide sufficient evidence that the transaction was legitimate, or if there was an error in processing the transaction.

A ____ Occurs When a Financial Institution Must Return Funds