Doing a Chargeback on Credit Card: The Beginner Guides

Doing a chargeback on credit card is a common thing in purchasing things. It happens because there is an invalid purchase, such as fraud, an invalid amount, and many other things. However, not all people understand how to file a chargeback. Several people think it is a complex process and lost in the beginning.

Here are a few things you should understand to file a chargeback as a first-timer. 

What is a Credit Card Chargeback?

Chargeback is an action initiated by the bank to reverse a credit card purchase. This action allows customers to get their money back for a foul transaction or purchases that don’t meet the standards by submitting a claim with the issuer.

Generally, a chargeback is a process between the merchant and the credit card issuing bank or customer. However, the chargeback is issued against customers, like erroneous ATM deposits. In other cases, the reverse payment is caused by unauthorized use of a credit card or failure to deliver the product or service.

Customers can request a chargeback from their issuing bank when they suspect a fraudulently used credit card. The issued bank will do an investigation for the claim.

Bank will hold the funds until they resolve the issue. There is a time limit for doing a chargeback on credit card. You should prepare all transaction documents to validate your claims. Generally, it takes 60 to 90 days, but also depends on the payment processor. The issued bank will do a refund if you can prove that the claim is valid. 

When You Can Get a Chargeback?

Usually, there are two types of credit card chargeback, criminal fraud or merchant abuse. The issued bank might have authorization for doing a chargeback on credit card. However, there are various reasons you can claim a chargeback.

1. Fraud or Unauthorized Use

When you find someone using your credit card without authorization to purchase goods or services, you may file a claim with the bank. You have to make sure the purchase is from someone you don’t know because you can be a victim of fraud.

2. The Items Were Never Delivered.

You may purchase some products, but the products never come to your house. The merchant cannot provide the tracking number or other documents to prove the product is being shipped. You may request a chargeback for this. However, you are not eligible for a chargeback if the item has a tracking number.

3. The Item is Damaged

This condition might be tricky because the damage could be from the shipping. The merchant may refuse to pay because they are not responsible for the damage. 

However, you should negotiate with the merchant about the damage you get. The chargeback is not eligible if the product is in good condition while the box is damaged. 

You should attach a document to prove the package is damaged when it arrives. You may attach a video as well to legitimate your claim.

4. Incorrect Amount

You may apply a chargeback if you pay more than the price you agreed to during the checkout. For instance, you get a 20% discount for a wallet but pay the full price during checkout. You may get a chargeback for this accident.

5. Get Charged after Canceling Subscription

Another reason to do a chargeback is you are still charged after canceling the subscription. The merchant still automatically charges your card monthly as if you never stop your subscription. You may file a chargeback and prove with some documents to make the claim valid. 

Doing a Chargeback on Credit card 

Doing a chargeback on a credit card may be complicated and need a long process. However, if the purchasing is incorrect and you get a fraud, you should do a chargeback. That will stop the fraud, and you will not lose your money for things you don’t need. 

There is a couple of process for doing a chargeback on credit card, including:

1. File a Request for Doing a Chargeback on Credit Card

Disputing a chargeback on a credit card needs an identification of the transaction. You should initiate the request with your credit card issuer for doing a chargeback on credit card process. In addition, you should acquire the requirements they need to make a request.

The simplest way to file a request is from the issuer’s website. Many larger banks allow you to initiate a request for a dispute entirely online. You will have access to find a form on the websites. Otherwise, if you can’t find it, you can search the bank’s online help pages for “Dispute a Charge” or “Chargeback.”

2. The Issuer Process

You can’t get an instant process in doing a chargeback on credit card. The issuer must review your dispute and decide whether it is valid or you should pay. If your form is accepted, they will pass it on to the card network, such as Visa, Mastercard, American Express, or Discover. Then, you may get a temporary account credit.

3. The Network Process

The card network will do another review of your form. There are two possible actions after reviewing the form. They will send the dispute back to the issuer or the merchant. 

In this case, the merchant has two options: either agree to pay or refuse the chargeback. If they agree to pay, the process will run smoothly. In contrast, if they refuse the chargeback, there may be more back-and-forth reviewing from the merchant and bank to settle the problem.

Therefore, the card network is the one that decides which party to pay. It will notify the successful dispiter, and your temporary card will be permanent.

4.  The Bank Notify the Customer

The bank will notify you about the decision by mail, email, or phone. As a customer, you may appeal if you aren’t satisfied with the decision. However, the situation could go to arbitration if the situation is uncontrollable. 

Arbitration is a method to settle disputes between two parties. It is more like a court but less formal. Each party will present their case to an arbitrator. The final decision from the arbitrator cannot be appealed.

Now, Do You Know About Doing a Chargeback on Credit Card?

After understanding the process, you need to make sure about the claim that you will make. You need to prepare all the documents because they will support the claim’s legitimacy. You just have to follow the regulation in doing a chargeback on credit card, and you can get your money back. Remember to be careful during the process. 

Leave a Comment

Random Kode