What are the outcomes in the chargeback lifecycle?

What are the outcomes in the chargeback lifecycle?

• A. Won means funds are returned; Lost means the dispute is closed
• B. Won means the merchant keeps funds; Lost means funds are withdrawn
• C. Won and Lost have no effect on funds
• D. Won means the dispute escalates; Lost means nothing happens

Answer: (A)

In a chargeback, there are two possible outcomes that end the dispute. If the cardholder’s claim is approved, the original charge is reversed and the funds are returned to the cardholder; the dispute is then closed in favor of the cardholder. If the merchant successfully defends the chargeback, the dispute is denied, the funds stay with the merchant, and the case is closed with the cardholder not receiving a reversal. So the outcomes boil down to either funds being returned or the dispute ending with the merchant retaining the funds.

In a chargeback, there are two possible outcomes that end the dispute. If the cardholder’s claim is approved, the original charge is reversed and the funds are returned to the cardholder; the dispute is then closed in favor of the cardholder. If the merchant successfully defends the chargeback, the dispute is denied, the funds stay with the merchant, and the case is closed with the cardholder not receiving a reversal. So the outcomes boil down to either funds being returned or the dispute ending with the merchant retaining the funds.