Who loses money in a chargeback?

Once upon a time, there was a girl named Sarah who loved buying things online. One day, she saw a beautiful dress on a website and decided to order it. She used her mom's credit card to make the purchase.

But when the dress arrived, it was the wrong size and a completely different color! Sarah was really disappointed. She tried to contact the website to get a refund or exchange, but they didn't respond.

Sarah told her mom about the problem. Her mom knew that sometimes when things go wrong with online purchases, you can ask the bank for help. So, they called the bank and explained what happened.

The bank looked into it and agreed that Sarah should get her money back because the website didn't send the right dress. They did something called a "chargeback."

Here's how it worked:

• The bank took back the money from the website and gave it back to Sarah's mom.
• The website lost the money because they didn't send the right dress.

So, in this story, the website was the one who lost money because they didn't do a good job with Sarah's order. The bank made sure Sarah got her money back and everything was sorted out in the end.

In a chargeback, the person or company that makes a mistake with a purchase is the one who might end up losing money. It's like a way to make things right when something goes wrong with buying stuff. Remember, it's important to always try to talk to the seller first and see if you can work things out together before asking the bank for help!