Understanding credit card chargebacks is crucial for business owners as chargeback costs are projected to reach $54.5 billion by 2024, with "friendly fraud" being a significant contributor. Chargebacks occur when a customer disputes a charge with their bank, leading to an investigation and potential reversal of funds, which can result in financial losses and additional fees for merchants. Major payment processors like PayPal, Stripe, Shopify, and others have distinct approaches to handling chargebacks, including dispute resolution services and fraud protection measures. Despite prevention efforts, chargebacks remain an ongoing challenge due to evolving fraud tactics, making it essential for businesses to maintain good records, provide excellent customer service, and utilize fraud detection tools. Frequent chargebacks can have long-term negative impacts, including increased fees and potential service termination by payment processors, underscoring the importance of proactive prevention strategies.