Chargebacks were initially developed as a consumer protection mechanism to safeguard customers from fraudulent transactions and faulty products, but they can severely impact retailers, who often lose both the original transaction amount and the product without any obligation for return. With the rise in chargeback incidents, e-commerce retailers are encouraged to implement prevention strategies as part of a broader fraud protection plan, which includes following proper payment protocols, optimizing customer checkout experiences, providing excellent customer support, and utilizing fraud prevention tools. Common reasons for chargebacks include merchant errors, criminal activity, and friendly fraud, where customers might change their minds about a purchase. To mitigate these risks, merchants can enhance their online store's usability and ensure that store policies and contact information are easily accessible, reducing the likelihood of customers bypassing them and directly contacting their credit card companies to initiate chargebacks. By proactively addressing these issues, retailers can foster positive customer relationships, improve transaction security, and minimize financial losses.