Chargeback reversal
Chargeback reversal is the cancellation of a previously filed chargeback, returning disputed funds to the merchant and removing it from the merchant's dispute count. Reversals occur when the issuing bank determines the chargeback was filed in error, the cardholder withdraws their dispute after receiving additional information, or the merchant successfully proves the transaction was valid through representment.
Chargeback reversals positively impact merchant chargeback ratios and can prevent or remove a merchant from a monitoring program. However, merchants may not recover chargeback fees even when reversals occur, depending on their processor's policies.