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FinanceMarch 7, 2026

Chargeback

A reversal of a payment, typically initiated by a credit card holder disputing a transaction with their bank.

Chargebacks are a consumer protection feature of credit and debit cards. If you didn't authorize a charge, or the goods weren't delivered, you can dispute the transaction and get your money back. The merchant bears the cost.

Crypto transactions cannot be charged back. Once you send USDC, it's final. There's no bank to call, no dispute process. This is by design: it's what makes blockchain transactions trustworthy for merchants (no chargeback fraud).

This finality is why most exchanges don't let you buy crypto with credit cards (or charge higher fees). The exchange takes on chargeback risk. Debit cards and bank transfers are preferred because they can't be reversed as easily.

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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.