What is a Debit Memo also known as?

A Debit Memo is commonly referred to as a chargeback because it involves the reversal of a transaction, typically initiated by a financial institution or payment processor to recover funds due to a disputed charge, error, or return of goods. In this context, a chargeback signifies an action taken to rectify a transaction that a party believes is unjust or erroneous, effectively returning the funds to the customer’s account.

When a chargeback occurs, it often prompts the involved parties to investigate the circumstances surrounding the original transaction. The concept of a chargeback fits the definition of a Debit Memo, as both relate to adjustments made on account statements to address issues involving financial discrepancies or disputes.

This understanding is vital in the realm of electronic transactions as it underscores the mechanisms in place for consumer protection and transactional integrity. The other options do not align with the primary purpose of a Debit Memo, as they refer to different aspects of transactional processing or documentation.