Chargeback Period

Simple definition
The time a shopper has to start a chargeback.
Expanded definition
The designated timeframe during which a cardholder can raise a dispute against a transaction and initiate a chargeback.


In the world of online commerce, the chargeback system is both a safety net for consumers and a potential pitfall for merchants. How long customers have to initiate a chargeback is a question on many merchants' minds. Understanding this timeframe is not just about knowledge—it's about business strategy and protection.

Understanding the Chargeback Period

At its core, the chargeback period refers to the specific timeframe a customer has to dispute a transaction, requesting their money back. This period isn't arbitrary; it's designed to protect both consumers and merchants. However, it's not to be confused with the dispute resolution timeframe, which pertains to how long the entire resolution process might take once initiated.

Factors Influencing the Chargeback Time Frame

Several elements can influence the specific duration of the chargeback period:

  • Type of Transaction: An online transaction might have different rules compared to one made in-store.
  • Reason for Chargeback: A claim of fraudulent activity may have a different timeframe than a complaint about the product's quality.
  • Credit Card Company Policies: Each company has its rules and regulations about chargebacks.

Chargeback Time Limits by Major Credit Card Companies

  • Visa's Chargeback Time Frame
  • Generally, Visa offers a 120-day window from the transaction date for cardholders to file a chargeback. However, this can change based on the nature of the dispute.
  • Exceptions include cases of fraudulent activity, which might have extended timeframes.
  • Mastercard's Chargeback Time Frame
  • Mastercard typically provides a 90-day window, but this can extend to 120 days or more depending on the specific chargeback reason code involved.
  • Certain conditions, like unrecognized transactions, might be treated with more flexibility.
  • American Express Chargeback Time Frame
  • American Express, often referred to as AmEx, tends to give cardholders up to 120 days, but there are exceptions based on the type of product or service in question.
  • For instance, disputes about quality might have a different window than those about delivery.

How to Monitor and Respond within the Time Frame

Being proactive is a merchant's best defence against chargebacks:

  • Monitoring Transaction Records: Regularly review your transaction records to identify any discrepancies or potential red flags.
  • Tools and Systems: Invest in tools that alert you immediately when a chargeback is filed. This gives you maximum time to respond.
  • Urgent Responses: The faster you respond with the necessary documentation and evidence, the better your chances of successfully disputing the chargeback.

Consequences of Missing the Chargeback Window

Overlooking a chargeback can have more repercussions than just the refund:

  • Financial Implications: Beyond the returned money, merchants may face additional fees from both their bank and the credit card company.
  • Merchant Credibility: Consistently overlooking chargebacks can tarnish your reputation with credit card companies.
  • High-risk Tag: Merchants with high chargeback rates might be categorised as high-risk, which can lead to increased transaction fees or even account termination.

Best Practices for Merchants

To navigate the world of chargebacks effectively:

  • Educate Staff: Ensure your team understands the importance of accurate transaction recording and timely responses.
  • Dedicated Management: Consider appointing a dedicated team or individual to handle chargebacks, ensuring no dispute goes unnoticed.
  • Partner Smartly: Work with payment processors known for their proactive alerts and robust merchant protection systems.


Chargebacks, while protective for consumers, can be a minefield for merchants. However, with proper understanding, proactive management, and strategic actions, businesses can ensure they're on the right side of the chargeback clock, safeguarding their revenue and reputation.