What does the term 'Billback' refer to?

The term 'Billback' refers specifically to a method used by companies to recover or reduce interchange fees associated with transactions. In the context of payment processing and financial transactions, billbacks occur when a merchant passes on certain costs, such as fees charged by credit card processors, back to the issuer or the cardholder. This can be beneficial for merchants looking to manage their transaction costs effectively.

Billbacks are commonly employed in arrangements where the ultimate responsibility for certain costs can be negotiated or addressed post-transaction. This practice helps to ensure that the financial burden of interchange fees is balanced appropriately between parties involved in a transaction, thus providing a strategic approach to managing operational expenses in a competitive landscape.

The other options focus on aspects of billing or consumer disputes but do not encapsulate the specific financial mechanism that 'Billback' represents within payment processing or transaction cost management.