A chargeback limit is the maximum dollar amount that you're willing to allow a customer to charge back to your account. This limit is typically set by the card issuer, and may be different for each cardholder.
Some businesses choose to set their own internal chargeback limits, which can be lower than the card issuer's limit. This can help to protect the business from excessive chargebacks.
It's important to note that a chargeback limit is not the same as a credit limit. A credit limit is the maximum amount of credit that you're allowed to extend to a customer. A chargeback limit is the maximum amount of money that you're willing to lose in the event of a chargeback.
Chargeback limits can happen for a variety of reasons, including fraud, disputes, and errors. If you receive a chargeback that exceeds your limit, you may be responsible for paying the difference.
If you're concerned about chargebacks, you may want to consider setting a lower limit, or using a different payment method that doesn't have chargebacks, such as a prepaid card.
