Chargeback insurance

Chargeback insurance is an insurance product that protects a merchant who accepts credit cards. The insurance protects the merchant against fraud in a transaction where the use of the credit card was unauthorized, and covers claims arising out of the merchant’s liability to the service bank.

This coverage can apply under a number of circumstances, including:

• The illicit use of a lost or stolen credit card before the loss or theft is reported by the cardholder.
• The use of credit card number generators or counterfeit plastic cards
• Post-purchase changes to "ship to" information
• Signature mismatch or signature not on file.

A merchant claiming under a chargeback insurance policy may be reimbursed for:

• The cost of a stolen product or service
• The loss of profit

A typical chargeback insurance policy will only cover losses on credit card transactions purchased through its own specific payment processor or payment gateway.

See also

• CISP - Cardholder Information Security Program
• PCI - Payment Card Industry
• Chargeback