Chargeback insurance

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Chargeback insurance refers to insurance coverage protects merchants who accepts credit cards. The coverage 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:

  • A credit card is lost or stolen and used before the cardholder can report it
  • Credit Card Number Generators or Counterfeit Plastic Cards
  • Post-purchase "ship to" information changes
  • Signature mismatch or signature not on file.

Merchants are 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.

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