The magical power of 'Chargeback' is hidden in the credit card! Your money comes back even after making the payment..

If there is some error during a credit card transaction or the item purchased is not received as expected, then in such cases, a chargeback proves to be a great support for cardholders. Chargeback is a consumer protection mechanism through which customers can ask the bank that issued their credit card to reverse the transaction.

How does a chargeback work?

When a customer requests a chargeback, the bank first investigates it and temporarily refunds the amount to the customer's account. After this, the bank asks for transaction details from the merchant. If the chargeback is found to be correct in the investigation, the amount is refunded forever. On the other hand, if the claim is proved wrong, then the money is deducted from the customer's account again.

In which cases can a chargeback be obtained?

Chargeback is mainly done in situations where the customer has suffered financial loss or fraud. Such as a fraudulent transaction done without the knowledge of the cardholder.

Double deduction of the same amount or wrong billing. Not getting the product or service despite paying the money. Getting a damaged, defective, or different product than advertised. Unknown transactions or subscription charges are deducted repeatedly without permission, or a technical glitch in payment processing.

When should a chargeback be used?

Customers are advised to contact the merchant directly before starting the chargeback process. If the merchant does not resolve the issue, then choose the chargeback option. It is important to note that a chargeback must be filed within 60 to 120 days from the date of the transaction. This time limit depends on the rules of different card networks and banks.

What are the necessary precautions?

Chargeback should be used as a last resort. Banks can also impose a penalty for using chargeback repeatedly or incorrectly. Doing so can also affect your credit card services and facilities.

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