Credit Card Chargeback

August 5, 2008

Discovered some fraudulent transaction on your monthly Credit Card statement? Use Chargeback to get Reversal of a Credit Card Transaction. There may be the cases when you find your Credit Card has been charged without your consent.

In case you are not satisfied with the quality of product or service then too you can make use of chargeback option available with all the Credit Card Companies. Theses types of transactions may include the situations where:-

•Card holder does not authorize the transaction.
•Transaction was processed more than once.
•Customer never received merchandise or services.
•Error in transaction amount.
•Incorrect amount processed in transaction.
•You receive a product differ from what was described or promised.
•Card Consumer is not satisfied with quality of product or service.

In case of chargeback Bank will investigate complaint and will take back the amount of original transaction from merchant’s account, unless the merchant can verify the transaction was genuine. Sometimes the complaint is not genuine and consumer’s claim gets denied, still in these cases merchant will be sometimes get charged processing fees.

Majority of the chargeback cases do happen due to technical problems between the merchant and the issuing bank. For example a consumer was charged twice for same transaction or other such mistakes like authorization process of a Credit Card where transaction is declined by the issuing Bank and the account is still charged.

A merchant is billed for the chargeback along with the fess and the settlements associated with the credit card transaction. A chargeback may be appealed by the merchant and if chargeback is found to be untrue then merchant will get a reversal. Dishonest consumers normally abuse the chargeback system by making a purchase over Internet with Credit Card and then issuing a chargeback on receiving the product or service leading to difficulty in recovering payment for merchants.

In the end, chargeback can be considered as safeguard against your Credit Card Transaction. As a Credit Card consumer one must have knowledge about all its technical details like rate of interest, annual fees and specially the things like chargeback.

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