Glossary

Chargeback Insurance

Chargeback insurance is a specialized insurance product designed to protect merchants from financial losses due to chargebacks. This type of insurance is particularly valuable in industries where chargebacks are frequent or potentially very costly. The insurance policy typically covers the cost of chargebacks if certain predetermined conditions are met, safeguarding the merchant's revenue and reducing the financial instability associated with chargeback claims.

Chargeback insurance offers a dual benefit of protecting against financial losses from chargebacks while also providing tools to minimize the risk of such events occurring in the first place. For many businesses, particularly those in high-risk sectors or with significant transaction volumes, investing in chargeback insurance can be a strategic decision that supports both financial stability and operational integrity. However, it's important for merchants to carefully consider the terms of the insurance to ensure it aligns with their specific needs and risk profile.

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