Do you pay by card for purchases and services? You have the right to recover money if you are not satisfied with the transaction. This is possible thanks to the chargeback procedure. Check how the chargeback works, when you have the right to make a complaint and how to make it. Don’t let the scammers know your rights.
Chargeback, which is a refund on a credit card
More and more people are giving up cash for non-cash transactions. According to NBP data, at the end of the second quarter of 2018, there were already 40.2 million payment cards on the Polish market. The value of transactions carried out at that time reached PLN 179.1 billion. Many consumers do not know that they have a chance to complain.
Chargeback (or chargeback or reverse charge) is a service that allows refunds for payments made with a payment card. It is available to all Visa and MasterCard holders. It doesn’t matter if they are credit, debit or prepaid cards. It is a mechanism designed to protect consumers against dishonest service providers, fraud and errors of payment systems. Complaints about card payments are not only available to bank customers. Companies offering non-bank online loans already offer payment cards. The Ferline card is new on the market. It works exactly like a traditional credit card, except that it allows you to use a revolving loan limit.
Therefore, if the goods we purchased turned out to be inconsistent with the description, and in the history of our account we notice transactions that we have not made – then it is possible to file a complaint to the bank for a refund on the credit card. In theory, the chargeback procedure is simple. The service is initiated by the bank based on customer complaints. The bank’s task is to consider the complaint and transfer money from the seller’s account to the card owner’s account.
Reverse charge – when is a complaint possible to the bank?
Complaints apply to all transactions made via Visa and MasterCard, i.e. payments for stationary and online purchases as well as cash withdrawals at ATMs and bank branches. The refund procedure does not only include cash deposit machines and transfers, so it will not be helpful if we make an incorrect bank transfer. Chargeback allows you to recover funds for services or purchases of products in a situation where it turns out to be impossible to assert rights directly with the service provider.
There are a number of reasons that entitle you to initiate a complaint procedure. These include, among others
- failure to deliver the ordered item, service or proof of purchase,
- delivery of damaged or incomplete product,
- charging a fee for a product or service not as described (this also applies to travel agency offers),
- double charge of the payment card,
- payment authorization errors,
- failure by the service provider to want to cancel the transaction,
- charge for the service we did not order,
- the appearance of expenses that we have not made,
- ATM withdrawing only part of the money, when the account is debited with the full amount.
The chargeback service will allow you to recover money in the event of unsuccessful purchases or cancellation of the flight for which we bought a ticket. Each bank is obliged to accept a complaint justified by the client. It is enough to show evidence of a negative transaction. Depending on the reason for the complaint, the time to start the procedure may vary. It can reach up to 120 days from the date of the transaction.
Card payment complaint. How to recover money from chargeback?
The maximum submission deadline depends on the reasons for the chargeback. It may be 45, 60, 90, 120 and 540 days from the date of the transaction. Both the Mastercard chargeback procedure and Visa chargeback require the consumer to follow the same steps. The first of these is to inform the bank that issued our payment card about your intention to use the chargeback procedure. We can do this in person, in writing or via the hotline.
During the conversation with the consultant, we will be informed which documents and transaction data we need to present. Documents confirming attempts to make complaints with the service provider and feedback messages may be useful. After a thorough description and documentation of the case by us, the bank is obliged to accept the complaint and start the procedure.
His task is to contact the payment organization that handled the transaction. The institution contacts the service provider who has not complied with the terms of the contract. If this does not respond or accept the complaint – the consumer will easily receive a refund. However, the service provider may decline chargeback, which significantly complicates the procedure.
When is it possible to decline chargeback?
The chargeback procedure means additional formalities and high fees. It is also often used by dishonest customers trying to extort extra money from sellers. For this reason, many online sellers do not recognize card payments. If the customer wants to make a complaint and the service provider wants to avoid additional costs, he has two options: get along with the customer or prove that the transaction has been carried out correctly.
Many wok sellers contact the consumer and persuade him to withdraw the complaint. Then they can return the money for the service without having to pay a chargeback fee. If the customer does not agree to this, both parties must provide documentation that will allow the legitimacy of the complaint.
If, on the other hand, the service provider does not agree with the customer’s objections, he may challenge the validity of the complaint. Again, you will need to provide strong evidence that the transaction will proceed correctly. However, even then the service provider may be charged some of the chargeback costs.