Chargebacks for SaaS: Causes, Hidden Costs, and Control
Written by Harry Prabandham
Curated by Rubric Financial
Last updated
1 / 5
What a Chargeback Is
- A chargeback is a forced reversal a cardholder initiates through their bank to claw back a charge they dispute.
- Unlike a refund you grant voluntarily, a chargeback is decided by the card networks and issuing bank, not by you.
- The disputed amount is pulled from your account immediately, often before you have a chance to respond.
- For subscription businesses, chargebacks frequently arrive on renewal charges the customer forgot they had authorized.
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About the author
Harry PrabandhamFounder & CEO
Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.
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