Chargeback is the process of canceling a transaction and returning funds to a customer's account initiated by the card issuing bank. It was developed to protect consumers when they encounter fraud, erroneous payments, or substandard goods and services. Let's find out more about what is a chargeback
How Chargeback works
Chargeback procedure starts when a cardholder applies to his bank for a refund. This can happen for several reasons, such as:
- Fraudulent transactions: If the card was used without the cardholder's authorization to make a purchase, a chargeback can be requested for a refund.
- Erroneous or duplicate transactions: If there was an error in making a payment or if the money was charged more than once, the buyer is entitled to a refund.
- Unprovided services or goods: If the goods were not delivered or services were not provided, charterback can be a lifesaver for the buyer.
- Purchase does not meet expectations: If an item turns out to be a fake or does not meet the stated specifications, charterback can be used to get a refund.
When is Chargeback necessary?
Chargeback is useful when a seller refuses to refund money for substandard goods or services. It may also be the only way to protect yourself when shopping online, especially when dealing with questionable sellers or fraudulent companies.
How do I submit a request for a Chargeback?
To initiate a Chargeback, the cardholder must:
Contact the bank that issued the card.
Submit an application explaining the problem and providing evidence (checks, letters from the merchant, etc.).
Wait for the bank's decision to contact the merchant.
Conclusion
Chargeback is an effective consumer protection tool, especially in cases of fraud or disputes with sellers. If you encounter a problem with a purchase, it is important to contact the bank quickly to take advantage of this opportunity to get your money back.
