No, a Bitcoin transaction that has already been included in a block on the longest chain cannot be reversed. This is by design as Bitcoin is intended to behave much like cash, with recipients being assured that the money is now permanently in their possession after a transaction has been included in a block.
Can cryptocurrency prevent chargebacks?
Yes. It is impossible in most cases to initiate a chargeback if the transaction was made with cryptocurrency. Chargebacks aren’t the only reason merchants are getting into cryptocurrencies, but with chargebacks costing businesses tens of billions of dollars each year and growing, they are undoubtedly a significant factor.
Accepting cryptocurrency payments is no longer a stunt or proof-of-concept exercise. Huge companies like Microsoft and Tesla take cryptocurrency as payment, and many small businesses are following suit. JP Morgan Chase is currently implementing their own coin with the goal of making cryptocurrencies accessible to businesses of all sizes.
Most cryptocurrencies aren’t backed by any central authority like a bank or government though. Instead, exchanges are carried out peer-to-peer, with the blockchain serving as an objective ledger that authenticates each transaction. In this system, there’s simply no way for chargebacks to be carried out. The buyer has no bank or card network to appeal to and no way to force a reversal of the transaction. If a consumer wants their money back and the transaction happened over the blockchain, they are entirely at the mercy of the merchant.
Cryptocurrency may circumvent the chargeback problem, but crypto alone is no solution to the underlying issues that lead to transaction disputes—issues such as products that don’t deliver on their promises of customer service that isn’t responsive to customer needs.