A chargeback is when there’s a legal dispute over a charge. It doesn’t happen much in the legal profession, but here’s an example of how a chargeback works: Let’s say you buy a couch for a $1,000. You put down a $500 deposit, and then the couch comes in and it’s defective. There is a little scratch on it. You now don’t want to pay the additional $500 that you owe. You can start a chargeback, which is literally a legal dispute between the credit card company and the cardholder. What typically happens is that the associations will side with the consumer. So you may get charged a fee of $15 to $30 , which is the money that’s paid to the credit card companies them to handle that legal transaction.