You purchase a product, but it doesn’t work or you don’t even get it. So you open a chargeback. How are banks able to just claw back the money you’ve sent?
In: Economics
If the seller still has their merchant account open with their bank, it goes through a chargeback process that ultimately deducts that amount from their future sales if they do not successfully challenge the chargeback.
Merchant accounts are a type of credit; if the seller is no longer in business, then the amount is recovered from the bank that issued the merchant account.
Sorry, ELI5: Your credit card company takes the money from the seller’s bank. If the seller is still in business, their bank will subtract it from their future sales.
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