A chargeback is the return of funds to a donor, forcibly initiated by the consumer's issuing bank.
When a person donates by credit card, their issuing bank -- the bank issuing the credit card -- approves and funds the transaction from the cardholder's credit card account. The donor (cardholder) retains some rights, including the right to challenge or dispute the validity of transactions that meet certain requirements. When a cardholder challenges a transaction, this is called a chargeback.
When a chargeback is initiated by the cardholder, the issuing bank intervenes to either reverse the transaction or open a case to resolve the dispute between the cardholder and the processing merchant (Blue Utopia). The type of action is dependent on the type of card used, the circumstances of the transaction, and the method of transaction.
Chargebacks always incur a fee. There are fees, imposed by the issuing bank, the instant a donor initiates the chargeback. This fee is passed on to the recipient of the original donation.