Chargebacks and Payment Disputes
Chargeback
A chargeback is a card-network dispute process in which the cardholder’s issuing bank seeks to reverse a settled card transaction.
Read full definitionGlossary topic
Payments, Refunds and Consumer Rights Glossary
Understand charges, refunds, chargebacks, subscriptions, card protections and the language companies use when handling your money.
ShouldEye explains payment and consumer-protection terminology in plain language, including what a term means, how it affects consumers and which questions or warning signs deserve closer attention.
Educational information only. ShouldEye does not provide legal, banking, or individualized financial advice. Dispute rights, deadlines, and outcomes depend on your payment method, card network, issuer, processor, jurisdiction, and the facts of your case. Legal Disclaimers
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Credit and Debit Cards
Annual Percentage Rate
Annual Percentage Rate (APR) expresses the yearly cost of credit including interest and certain fees.
Read full definitionCredit Cards & Cardholder Protection
Credit Utilization Ratio
Credit utilization ratio is revolving balances divided by revolving credit limits, a major scoring factor.
Read full definitionCredit Cards & Cardholder Protection
Schumer Box
The Schumer box is the standardized U.S. credit-card disclosure table showing APRs, fees, and key terms.
Read full definitionMerchant Descriptors
Merchant Descriptor
A merchant descriptor is the short statement text that identifies who charged your card or account.
Read full definitionPayment Fraud
Unauthorized Transaction
An unauthorized transaction is a payment made without the account holder’s permission—often true fraud or account takeover.
Read full definitionRefunds and Returns
Refund Pending
Refund pending means a refund has been initiated but has not yet posted as available funds on the original payment method.
Read full definition870 published definitions in this topic
- 0% Intro APR Credit CardA 0% intro APR credit card advertises an interest-free promotional period on purchases and/or balance transfers.
- Access Control ServerAn Access Control Server (ACS) is the issuer-side system that authenticates the cardholder in a 3-D Secure flow.
- Account AgeAccount age is how long a credit account has been open, contributing to length-of-history scoring factors.
- Account Closure by IssuerAccount closure by issuer is when the bank closes the card for inactivity, risk, or policy reasons.
- Account Data CompromiseAccount data compromise (ADC) is an incident where payment account data is exposed or stolen from a merchant, processor, or other entity.
- Account Funding TransactionAn Account Funding Transaction (AFT) pulls funds from a card to fund another account (for example a wallet).
- Account Takeover FraudAccount takeover (ATO) fraud occurs when an attacker gains control of a customer’s merchant or wallet account and abuses stored payments.
- Account UpdaterAccount updater is a network or issuer service that provides updated card numbers and expiry for stored credentials.
- Account Updater FeeAn account updater fee is charged for network services that refresh expired or replaced card credentials on file.
- Account-to-Account PaymentAccount-to-account (A2A) payment moves money directly between bank accounts without card networks.
- ACHACH is the U.S. Automated Clearing House network for batch electronic credit and debit bank transfers.
- ACH Return Versus ChargebackACH return versus chargeback contrasts bank-rail return messages with card-network chargeback dispute processes.
- Acquired FundsAcquired funds are proceeds of card or payment transactions cleared for the merchant under the acquiring relationship.
- AcquirerAn acquirer is the merchant’s bank or acquiring institution that enables card acceptance and handles merchant-side dispute messaging.
- Acquirer Reference NumberAn Acquirer Reference Number (ARN) is a card-network tracking number assigned to a cleared card transaction.
- Acquiring BankAn acquiring bank sponsors merchants into card networks and settles card proceeds to merchants.
- Acquiring HostAn acquiring host is the acquirer-side processing system that receives authorization and clearing messages for merchant transactions.
- Acquiring ProcessorAn acquiring processor is a company that processes merchant card transactions on behalf of an acquiring bank or program.
- Additional CollateralAdditional collateral is extra security demanded after risk increases beyond initial underwriting.
- Address Verification ServiceAddress Verification Service (AVS) compares billing address elements to issuer records during authorization.
- Advance Billing NoticeAn advance billing notice is a reminder that a recurring or renewal charge will occur soon.
- Adverse Action NoticeAn adverse action notice explains that credit was denied or offered on less favorable terms and cites principal reasons.
- Aggregator MerchantAn aggregator merchant is a master accepting party that collects payments on behalf of multiple underlying sellers.
- Aggressive MarketingAggressive marketing uses undue pressure, harassment, or coercion that undermines free consumer choice.
- Airline MilesAirline miles are loyalty currency that may be earned via co-branded cards or transfers from flexible point programs.
- AlipayAlipay is a major Chinese digital wallet and payment platform used domestically and by outbound travelers.
- AllowlistAn allowlist (whitelist) explicitly trusts certain customers, BINs, devices, or IPs to bypass stricter checks.
- Alternative Payment MethodAn alternative payment method (APM) is any popular checkout method outside classic international card brands.
- American ExpressAmerican Express is a global payments company that issues cards and operates the American Express network.
- Annual FeeAn annual fee is a yearly charge for having the credit card, often billed on an anniversary statement.
- Annual Percentage RateAnnual Percentage Rate (APR) expresses the yearly cost of credit including interest and certain fees.
- Apple PayApple Pay is Apple’s digital wallet for provisioning tokens and paying via Apple devices.
- Application FraudApplication fraud is deception during account, credit, or merchant onboarding to obtain access or funds.
- Approval OddsApproval odds are an estimate of how likely an issuer is to approve a credit-card application.
- Approved Scanning VendorAn Approved Scanning Vendor (ASV) is authorized by PCI SSC to perform external vulnerability scans required by PCI DSS programs.
- ArbitrationIn payments, arbitration is the card-network process that decides unresolved chargeback liability after earlier stages fail.
- Assessment FeeAn assessment fee is a card-network charge, often a small percentage of volume, paid through the acquirer.
- Audit RightAudit rights allow a party to inspect records related to processing, compliance, or fees.
- Authentication RateAuthentication rate is the share of eligible payments that complete a required authentication step such as 3-D Secure.
- Authentication RequestAn Authentication Request (AReq) is the 3-D Secure message that starts issuer authentication for a transaction.
- Authentication ResponseAn Authentication Response (ARes) is the ACS reply indicating authentication outcome or that a challenge is required.
- Authorization DisputeAn authorization dispute challenges whether a card payment was properly authorized under network rules.
- Authorization ExpiryAuthorization expiry is when an unused approval/hold ages out if not captured or reversed.
- Authorization FeeAn authorization fee is a per-attempt or per-approved charge for sending an authorization request to the issuer.
- Authorization HoldAn authorization hold temporarily reserves funds for a purchase before the merchant captures the final amount.
- Authorization OptimizationAuthorization optimization improves the odds that authorization requests are approved.
- Authorization RateAuthorization rate is the percentage of authorization requests that the issuer approves.
- Authorization Response CodeAn authorization response code is the issuer or network result code returned for an authorization attempt.
- Authorization ReversalAn authorization reversal cancels an unused approval so the related hold can be released.
- Authorized UserAn authorized user is someone added to a card account who can spend but is usually not fully liable like the primary cardholder.
- Authorized-User FeeAn authorized-user fee is an annual or per-card charge to add additional cardholders.
- Automated RepresentmentAutomated representment uses rules or software to assemble and submit chargeback defense evidence with limited manual case work.
- Automatic CaptureAutomatic capture finalizes an authorization without a separate manual capture action.
- Automatic Card UpdateAutomatic card update refreshes stored card details when issuers reissue numbers or expiry dates.
- Automatic PaymentAutomatic payment is a scheduled pull from a bank account to pay the card minimum or statement balance.
- Automatic Payment RetryAutomatic payment retry is system-scheduled reattempts of failed payments without requiring the customer to click pay again.
- Available CreditAvailable credit is the unused portion of your credit limit.
- Average Daily BalanceAverage daily balance is a common method of summing each day’s balance and dividing by days in the billing cycle for interest.
- AVS MatchAn AVS match means the billing address data supplied at checkout aligned with the issuer’s address records.
- BacsBacs is a UK retail payment scheme used for Direct Debit and Direct Credit bulk payments.