We use credit cards as payment options for various things like bill payments, purchasing goods, etc. With a spike in digital payments, using credit cards online has increased a lot.
Whenever you purchase goods or services, there is always an issue of non-delivery and other damages which may arise during the delivery process.
When you receive these kinds of products or services and the value promised by the provider is not met by them, then you can raise a dispute with your credit card company.
Using this dispute, you can claim back the payment that you have paid using the credit card. This type of claim is called Chargeback.
in this article, we will discuss what is credit card chargeback, find out where you ask for the Chargeback when to ask, how to raise a dispute, etc.
but first, let’s find out what is Credit Card Chargeback.
What is Credit Card Chargeback?
Credit Card Chargeback is an action taken by the bank to reverse the payment and initiate a dispute payment process. It essentially puts the transaction made in a disputed payment category and the bank will raise a ticket for this.
This ticket will be used to conduct an inquiry into the matter of a product or service delivered in an unfavorable condition. Whenever someone chargebacks, the payment made to the merchant becomes disputed and further investigation into the payment is initiated.
When to Ask for Chargeback?
You should ask for a chargeback if a few genuine conditions, which are as follows-
- In case of any unauthorized transactions, you can raise a chargeback claim on the payment and your payment will be disputed for the case
- If you’ve received a defective item or service then you can raise a dispute by claiming a chargeback
- If your delivery package is not delivered to your home then you can raise a chargeback for the payment made using credit card
- In case, the cost of the purchase was different than what you’ve changed even then you can claim a chargeback
How to Dispute the Credit Card Transaction?
If you get any type of defective items or poor service, then you can claim a chargeback. To raise the dispute, you’ll have to file a chargeback request.
The request is reviewed by the merchant and he/she will accept or reject it depending on the merchant’s perception.
This information is also shared with the VISA or Mastercard and a refund will be initiated on your credit card.
In case of rejection, the merchant will submit more information like a delivery receipt, delivery signature, etc
The payment gateway will decide which party is at fault and which party is claiming the right and based on the findings, the payment will be returned.
You can raise a dispute by making a call to the bank or calling customer care. Sometimes banks may demand a signed.
FAQ
Chargeback is a dispute mechanism initiated by the cardholder to request a refund from the merchant. You can get a refund if the transaction is unauthorized, or fraudulent, or if they didn’t receive the goods or services promised.
The common reasons for chargebacks are unauthorized transactions, merchandise not received, goods or services not as described, billing errors, and fraudulent activity on the card.
You cannot eliminate chargeback but certainly can be reduced. These include providing clear product descriptions, responsive customer service, accurate billing, secure payment processing, and effective fraud prevention systems.
The timeframe for filing a chargeback varies depending on the card network and the reason for the dispute. Generally, cardholders have between 60 to 120 days from the transaction date or the expected delivery date to initiate a chargeback.
Chargebacks can have significant negative impacts on merchants. They may result in loss of revenue, additional chargeback fees, damage to reputation, and potentially being placed on a chargeback monitoring program.
Merchants have the right to dispute chargebacks by providing evidence to the card issuer or bank that proves the transaction was legitimate. This evidence may include order details, shipping records, delivery confirmation, and customer communication.
Yes, merchants may incur chargeback fees imposed by card networks or payment processors. These fees are typically charged to cover administrative costs associated with managing the chargeback process.
