Need Help With A Chargeback?

A chargeback is a too provided by banks and credit card firms to help reverse payments to a payer of some transaction, especially a credit card transaction Most commonly the payer is a consumer. The chargeback reverses a money transfer from the consumer’s bank account, line of credit, or credit card.

We’ve seen an huge rise in chargeback reports that are requested since the beginning of the pandemic and while chargebacks can be convoluted, they don’t have to be. If you have any questions about how to submit a chargeback or if you are unhappy with the decision you received, please feel free to reach out to us directly.

How does it work?

1. A cardholder disputes a transaction with their issuing bank who then extends provisional credit.

2. The customers bank sends a retrieval request to the sellers bank to obtain additional information.

3. The sellers and customers banks resolve the dispute if possible, normally the acquiring bank transmits a chargeback notification to the merchant.

4. The sellers bank then either accepts the chargeback or fights it by resubmitting the charge along with the necessary evidence to disprove the claim through re-presentment.

5. The issuing bank will review the new evidence and make a final decision. If they find in favor of the merchant, the provisional credit will be reversed and returned to the merchant.

What is the difference between a chargeback and a PayPal claim?

A PayPal claim is typically requested from a buyer on the PayPal site against a seller, when the buyer has purchased an item and it either: didn’t arrive or did arrive, but was significantly different from the item description, this falls under “product received not as described by provider”.

Claims will often require PayPal customer support to make a decision either for or against the seller based on evidence collected from both parties. A claim can only be filed after going through PayPal Dispute Resolution in the PayPal Resolution Center.

What can go wrong? 

Something that you must be aware of is that an party a seller that is unhappy with the decision can request further review, this puts the chargeback process into the pre-arbitration phase. The back-and-forth of the pre-arbitration and arbitration phases can last for months, and arbitration fees adding up to hundreds of dollars must be paid to the card networks.

If banks cannot come to an agreement during pre-arbitration, the process enters arbitration. The card network will examine the evidence and make a final decision.

Here are the top 5 reasons as to why a chargeback might be refused –

1. Using A Mastercard


With Mastercard unfortunately the burden of proof lies on you and can make things difficult. If you buy something face-to-face and then get home and realize that it’s not as described, you’re out of luck entirely as you had a chance to examine the product.

2. Disputing Things For The Wrong Reason


Disputing orders for the wrong reason makes things more difficult and makes it more likely that you will lose. Don’t dispute things as “unauthorised” unless you never gave the merchant your credit card number. Don’t dispute things as “non-receipt” if the merchant did do something but you didn’t get the results you wanted.

3. Not Giving The Merchant A Chance To Fix The Problem

Most merchants are actually on the up and up! If the merchant offers to try to fix whatever problem you have without charging more, you have to give them the chance. If you’re from New York and got your car repaired in Florida, you get back home and the repair isn’t working right, still have to give them a chance

4. The Charge Is Too Old


Please, please check your statement every month. We work within very limited timeframes, and, technically, you are required to notify your bank of a dispute within 60 days of the statement date the charge appears on.

The main reason that people fail to recover their funds through a chargeback is simply because they did not speak to their bank in time.

Visa gives some extensions: non-receipt and quality. With quality, you have to show you’ve been working with the merchant consistently to resolve the problem. MasterCard pretty much only gives extensions on non-receipt

5. Lying


Remember, the merchant does have a chance to dispute these things. If you tell us that you ordered widget A but received widget B but have no proof, and the merchant sends proof that you actually ordered widget B, you’ll probably be getting rebilled.