Credit card chargebacks, while designed to protect consumers from fraudulent activities, pose significant financial risks to e-commerce businesses, costing them up to $4 for every $1 disputed. Chargebacks occur when customers file disputes with their card issuer over unauthorized or misunderstood transactions, and merchants typically only win 20-30% of these disputes, leading to loss of revenue, goods, and additional fees. Chargeback fraud can arise from various scenarios, including the use of stolen cards, delayed deliveries, unrecognized business names on statements, and recurring payments from unintentional subscriptions. To mitigate these risks, businesses are encouraged to implement preventive measures such as fraud detection software, clear communication of charges, robust customer service, and transparent subscription management. Despite the challenges posed by chargebacks, adopting best practices can help businesses protect their bottom line and maintain customer trust.