What action should be taken when a customer performs a chargeback due to not recognizing a transaction?

Investigating the transaction when a customer performs a chargeback due to unrecognized charges is the most appropriate action. This step is crucial because it allows the merchant to gather all relevant information regarding the transaction in question, including transaction details, purchase history, and customer communication, which can provide insights into whether the charge was legitimate or if it was indeed a mistake or fraudulent.

Before taking further actions such as issuing a refund or contacting the customer, understanding the context around the chargeback is essential. This investigation not only helps to respond appropriately to the chargeback claim but also aids in assessing if there’s a need for improvements in transaction clarity or customer communication.

Additionally, investigating transactions can help identify patterns or recurring issues, leading to better strategies for preventing future chargebacks. This proactive approach ensures that the merchant is not only reacting to the current situation but is also taking steps to improve overall customer experience and satisfaction moving forward.