# Chargeback Fraud

> Chargeback fraud occurs when a consumer makes an online purchase and then requests a refund from their bank by claiming the transaction was unauthorized or the goods were never received.

- **URL**: https://dodopayments.com/glossary/chargeback-fraud

---

## What is Chargeback Fraud?

Chargeback fraud occurs when a consumer makes an online purchase and then requests a refund from their bank by claiming the transaction was unauthorized or the goods were never received. Unlike legitimate disputes, this is a deliberate attempt to keep the product while getting the money back.

### Why It Matters

- Merchants lose both the sales revenue and the physical inventory associated with the fraudulent claim.

- Excessive chargebacks can lead to heavy fines from banks and the eventual loss of the merchant's processing account.

- It forces businesses to increase prices for all customers to cover the costs of fraud and dispute management.

## Learn More

- [How MoR providers handle chargebacks](https://dodopayments.com/blogs/merchant-of-record-chargebacks)
- [Handling refunds and chargebacks as a solo founder](https://dodopayments.com/blogs/handle-refunds-chargebacks-solo-founder)
- [Dunning management playbook](https://dodopayments.com/blogs/dunning-management)