When you have received a product that is defective, the wrong size or type, or if it did not arrive at all, it is important to ask your merchant for a refund. Failing this, you can file a complaint and request a chargeback from the issuing bank of the credit card company. This process can be lengthy and complex, but it is often successful if certain steps are followed.
However, a large number of chargeback requests are denied and merchants often win disputes. The reason for this is not just bias towards the merchant, but also that the customer may not have been well-prepared for the requirements of the chargeback process. A fund recovery service can help customers prepare their complaints, gather documents and information, and succeed in their chargeback claims.
Professionals at Pengeretur provide information to consumers about credit card chargebacks, wire recalls and other fund recovery strategies. We advise clients on the chargeback process and these best ways to pursue fund recovery, particularly for merchant or broker disputes.
5 Reasons Chargeback Requests Fail
There is no guarantee that chargeback requests will be granted. The following are the top reasons chargebacks are denied.
- Customer Did Not Give the Merchant a Chance to Deal with the Problem
- Ask for a Chargeback for the Wrong Reason
- Country or Type of Credit Card
- The Charge Is Too Old
- Insufficient Information
When a customer approaches the issuing bank, the first question they will often be asked is whether they went to the merchant and requested a refund. This is not just a way of pushing the customer off, but it is a legitimate question that will save everyone time and hassle. The customer should first give the merchant sufficient time to heed the complaint and answer.
If a customer did not give the merchant 5 to 7 business days to respond to a complaint, the issuing bank will most likely send them back to ask again or wait. If they have already dealt with the merchant, they may have been rude or abrupt or may have gotten into an argument with the merchant without a reasonable cooling-off period. The customer should address their complaints to the merchant rationally and patiently and perhaps a dispute can be avoided and the refund can be granted on the spot.
Many consumers don’t have experience with chargebacks. They may use incorrect terms that may mess up their complaint. For instance, they may call a merchant dispute “fraud” or call a charge “unauthorized” even if they made it themselves.
Customers are often angry when they demand a chargeback and are quick to assume the merchant ripped them off intentionally when this often is not always the case. Therefore, they may call their charges “unauthorized” because they believe they were made under false pretenses when the merchant was acting in good faith and made an error.
This can confuse the whole process for the customer and all the merchant has to do is prove the charges were authorized. This is a slam dunk for the merchant and a loss for the customer because the issue went from a defective item to whether or not the merchant literally stole money from the customer, which is usually not the case.
Getting terms right and understanding the chargeback process is important, and that is why a fund recovery service is so advantageous. Making sure you are claiming the right things and familiarizing yourself with terms is easier with fund recovery professionals by your side.
It is true that cultural influences come into play when it comes to refunds and chargebacks. Not all countries honor the slogan, “The customer is always right,” and maybe more resistant to chargebacks. In addition, certain credit card companies put a substantial burden on the customer to prove that reasonable expectations were not met. This is fair to the merchant but can make it harder for the customer.
Not acting fast enough on a complaint is another reason a chargeback is denied. This means giving the merchant enough time to resolve the issue but not so much time that you run out the clock to file a complaint. The window is usually pretty generous. Visa, for instance, gives customers 60 days to request a chargeback from the time the transaction appears on the statement. Still, procrastination is the enemy of many customers.
Finally, one of the main reasons chargebacks are denied is insufficient information. For a customer requesting a chargeback, all of their evidence is in the form of verified information. They should have a picture proving what the order was, the date when it was supposed to be sent. There should also be copies of communication with the company, pictures of the damaged product with a timestamp.
Also, the customer should show evidence the item was sent back. This is important because it proves that the customer is not attempting to abuse the chargeback privilege to keep the item and get their money back. Unfortunately, this is common and is a form of shoplifting called “friendly fraud,” and is the reason why the burden of proof is often on the customer.
Even the most cogent cases for chargebacks are often not honored by the issuing bank, at least not the first time around. The next step is to go to a consumer protection agency and speak to the ombudsman. It is also useful to work with a fund recovery service that can improve your chances of getting a chargeback.
Going to the next level and consulting an agency may take some time, but many customers find that government agencies are less biased and look at their complaints in a more in-depth way. Those whose chargebacks were rejected by issuing banks may find success in fund recovery with government agencies.
The Pengeretur team provides you with information and assistance for fund recovery, particularly with chargebacks. We provide information about the chargeback process and tools that will help you analyze your situation and assess the best strategies for pursuing a chargeback.