The risk associated with a consumer's refusal to pay a charge on his or her credit card is called a:
A) discount rate
B) cardholder not present risk
C) chargeback
D) refusal risk

Question

Quizplus · Accepted Answer

Chargeback is the correct term for the risk associated with a consumer's refusal to pay a charge on his or her credit card. It occurs when a customer disputes a charge and the payment is reversed, transferring the funds back from the merchant to the consumer.

The Risk Associated with a Consumer's Refusal to Pay a Charge