Author: Chris Hoffman / Source: howtogeek.com
A chargeback lets you dispute a credit card transaction and reverse it, getting your money back. For example, if you paid a subscription fee to MoviePass and the company just won’t let you cancel your subscription, you can do a chargeback.
The chargeback process is handled entirely through your bank or credit card issuer.
The issuer will contact the business and sort things out, and you should almost certainly win if you have a valid reason for the chargeback.If It’s Fraud, Call Your Credit Card Company Immediately
First off, if the purchase was fraudulent—for example, if someone has acquired your credit card details and is using them to make purchases—you should contact your credit card company immediately and let them know. The company will cancel your current credit card, send you a new card with a new number, and cancel the transactions you didn’t make.
When You Should Initiate a Chargeback
Here are the situations where you’re allowed to initiate a chargeback:
- You didn’t authorize the transaction: This generally occurs when someone steals your credit card information. Contact your bank immediately.
- You didn’t receive services or merchandise you paid for: Chargebacks can save you if you order something online and the merchant never ships it but refuses to refund you.
- You received defective or not-as-described merchandise: If you buy something online and the item you received was damaged during shipping, isn’t as described, is counterfeit, or is generally just poor quality, you can initiate a chargeback. This also applies if the business refuses to accept your return of the product, or if you paid for a service and that service was not performed as promised.
- You were charged a recurring fee after canceling: Many services (like MoviePass) are ongoing subscription services that charge you a monthly fee. If you cancel the service, but the business refuses to honor the cancellation and keeps charging you (also like MoviePass), you can initiate a chargeback to stop them.
- You were charged twice for the same thing: If you see duplicate transactions on your card and the merchant only should have charged you once, you can initiate a chargeback to get rid of them.
- You were charged the wrong amount of money: If you see a charge that doesn’t match what you agreed to pay, you can fix the problem through a chargeback.
- You were charged in the wrong currency: If you were charged in a foreign currency without being notified of that fact, you could initiate a chargeback. This can help you avoid surprise foreign transaction and currency conversion fees.
- You didn’t receive credit for a return: If you return an item and the merchant doesn’t credit your card or reverse the transaction within a reasonable amount of time, you can initiate a chargeback to get your money.
You often have up to 120 days to initiate a chargeback, but the time limits can vary a bit depending on the type of chargeback. Don’t wait too long to start a dispute.
Contact the Merchant Before Starting a Chargeback
Before initiating a chargeback, you should contact the merchant first and give them a chance to correct the problem. For example, if you order something online and the package gets lost in the mail, or the product arrives, and it’s been damaged in transit, you should contact the merchant’s customer service and give them a chance to make things right. Perhaps they will refund your purchase or mail you a new product. Whatever problem you’re dealing with—whether you want to reverse a duplicate charge or return a product that isn’t as advertised—try contacting the merchant.
Merchants want to work with you. It’s cheaper for them just to refund you. The merchant will have to pay a…
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