A reversal of chargeback is the return of funds to a merchant after a chargeback has been debited from its account and then cancelled or overturned. It happens when the merchant wins through chargeback representment or a later stage such as arbitration, when the issuer withdraws the dispute because the cardholder recognises the transaction, or when the issuer accepts evidence that a refund had already been made. The acquirer then credits the disputed amount back to the merchant, normally through its regular settlement.
The term is sometimes confused with a payment reversal, which cancels a transaction before or shortly after authorisation, and with a cardholder's chargeback itself, which reverses the original sale. A chargeback reversal recovers the money, but fees charged on the chargeback, such as a chargeback fee, are usually not refunded, and the original dispute may still count towards card network monitoring of a merchant's dispute ratio.