We use credit cards for the majority of purchases both online and offline. It is one of the payment options that enables you to get various offers and reward points to do so.
The credit card in the right hand could be a good way of using debt to get the best offers and save a lot of money, but in an inexperienced hand, this can be dangerous.
Credit card users are also a big target for scammers and pickpockets as they can use your card without your knowledge and you’ll be left with a big credit card bill.
There are various safety and precautionary measures that you can take to avoid this but if you are subject to this type of scam then don’t worry, you can still claim your credit card chargeback.
You must be wondering what a is Credit Card Chargeback.
Well, in this article, we will discuss what is Credit card chargeback, when to ask for a Credit card chargeback, how to raise a dispute and much more.
But first, let’s shift our focus to the precautions and safety tips to avoid falling into this situation in the first place.
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Credit Card Precautions and Safety Tips
The following are the credit card precautions and safety tips that you can follow-
- Always keep your card with you do not share it with anyone
- Keep the credit card’s PIN different from your date of birth or any other generic PIN like 1234, 1111, etc.
- Change your PIN regularly
- Do not use your credit card on untrustworthy website or place which does not hold any credibility
- Complain to your bank immediately in case your card is stolen
- Do not click on the suspicious link any make any payment, Before making any payment check the link of the site and ensure that the link of the website is from an official source
What is Credit Card Chargeback?
Credit Card Chargeback is an action taken by the bank on a credit card transaction in which, the bank returns the money to the customer for a disputed transaction.
This type of service is there to empower the customer to demand a refund in case of any fraud, item not delivered, or selling scam.
When to Ask for Credit Card Chargeback?
So, your credit card is stolen and now you are receiving an SMS of card usage, Now what?
Well, the very first step when you start getting these messages is to confirm whether you have your card or not.
If not then you’ll first have to hotlist your credit card which will make your credit card unusable.
Now, ask your family members whether they are using your card or not and confirm is it a legitimate purchase or not.
Now, in case of fraud, you’ll have to file an FIR with the police of your credit card’s illegal usage and let the bank know about this type of illegal transaction that has taken place.
After taking all these actions, you can ask the bank for a Credit Card chargeback and the bank will process your request. You’ll receive the amount back and you’ll be issued a new credit card with a restored credit limit.
It is important to note that for credit card chargeback, you’ll have to convince the bank about your situation and also in case of unauthorized transactions file a police report.
You can file for credit card transactions in some other situations as well, which are as follows-
- In case, you’ve received a defective item then you can demand the bank to give you a credit card chargeback
- If you did not receive your delivery for the order but the payment has been made from a credit card then you can demand a chargeback for the same
- If the cost of the purchase was different from what you agreed upon then you can demand a credit card chargeback
How to Raise a Dispute in Credit Card Transaction?
In case, you want to raise a dispute and claim the credit card chargeback then you can request the chargeback by calling the bank or calling customer care.
You’ll have to let the bank know that you want to cancel the payment to the merchant and cite your reason. The bank may demand you to follow some procedure that enables the bank to register the dispute.
After that, a request is sent to the merchant and he/she will accept or reject it depending on the merchant’s perception.
The same information will also be shared with the VISA, Mastercard, or Rupay and a refund will be initiated if the bank is satisfied.
If the merchant rejects the chargeback, then the merchant has to submit more information like delivery receipt, invoice, etc.
Based on the evidence, the bank will decide whether to issue a refund to the customer or not, and based on this, the payment will be returned.
Yes, the merchant can dispute the chargeback and submit documents to the bank proving their side of the story and the final decision will be made by the bank based on the evidence.
In case of fraud, the customer may file for a chargeback from the credit card company and the merchant usually has to pay the money back.
If the merchant does not respond to the credit card chargeback then by default, the transaction is made in the favour of the customer and after the settlement to the customer, the merchant cannot raise any dispute beyond this point.
Yes, if the customer does not have a compelling case or cannot prove their side of the story with proper documents then the bank may refuse to issue any chargeback.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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