A chargeback is when the credit card company withdraws the money for a transaction from a merchant’s account and deposited in a consumer’s following a dispute.

Basically, you do a chargeback when you feel like you’re not getting what you paid for, in terms of the quality or type of good or service.

To start a chargeback, contact your credit card company and ask. A dispute process begins and the merchant will have to provide proof they rendered service properly. If the merchant can’t provide sufficient evidence, the credit card company debits the transaction amount from the merchant’s account and credits it to your account.

Additionally, the credit card company charges the merchant a chargeback fee.

We urge consumers to only use chargebacks as a last resort and never before making several attempts to resolve an issue directly with a merchant. The last step before doing a chargeback is to threaten to use one. Sometimes that’s enough to change a vendor’s mind and let them know you’re serious.

Have you ever used a chargeback? How did it work out? — BEN POPKEN