Provisional credit is a temporary refund issued to the cardholder during a chargeback investigation. It ensures that the customer’s account is funded while the dispute is reviewed. If the dispute is resolved in favor of the merchant, the funds are reclaimed. If not, the temporary credit becomes permanent.
As a merchant, provisional credit doesn’t mean you’ve lost the case — it’s simply part of the dispute timeline. Understanding when provisional credit applies helps set expectations during the resolution process. Clear records and timely responses increase your chances of reversing the outcome.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
