With so many online stores opening up and physical stores reopening, commercial activity online and offline is booming. This means that the number of credit card and payment platform transactions is up. Unfortunately, sometimes things go wrong when purchasing items. You may not have received something you purchased online, it is not in the right color or arrived in poor condition. In this case, you will want a credit card chargeback.
Obviously, merchants are not too happy with chargeback requests, whether they are for credit cards or Paypal chargeback. Although many merchants want to keep their customers happy and be more compliant in granting refunds, others may dig in their heels and refuse. In this case, you will need some tips for a successful chargeback process.
Dealing with merchant or broker disputes is not as easy as settling a clear case of fraud or unauthorized charges by reversing them. Issuing banks, or banks that issue credit cards, are usually quite helpful with customers who notice unauthorized charges on cards they reported lost or stolen. However, disputes are more complicated, because the cases are murkier and both sides are presenting their case. In a way, it is similar to a court case where the issuing bank serves as a judge.
Just as those involved in court cases seek the counsel of an attorney, if you want to ensure your chargeback request is successful, it is often helpful to use a fund recovery service. 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 Steps to a Successful Chargeback Request
The following are five tips that will improve your chances of getting a chargeback for an unsatisfactory item or service:
- Try to Persuade the Merchant
- Collect Evidence
- Be Patient but Persistent
- Go to the Ombudsman
- Seek a Fund Recovery Service
If you go to an issuing bank after not successfully convincing the merchant to return your money, you may be asked to talk to them again. This is not always the case of an issuing bank trying to push you off. Sometimes customers are quick to complain to an issuing bank and starting a long dispute when the case could easily be handled in a few conversations.
Don’t take the first refusal by the merchant as the final word. You may have spoken to a specific person in the customer service department who may have been having a bad day or who didn’t consult properly with the management. It is worth trying again and presenting your case cogently.
Some merchants may be dismissive of demands for a chargeback because they think the customer does not have the photo or digital evidence. They may suspect the client of “friendly fraud” which is a form of digital shoplifting that occurs when a customer wants to keep an item, claims it is broken or didn’t arrive, and abused the chargeback privilege.
Without giving your game away, tell the merchant that you have evidence the product was defective and that you are ready to provide it to the issuing bank. Casually mention that you have many friends on social media and will be happy to post about the issue on your page or on review sites.
The merchant may get the message, want to minimize conflict, and provide the refund. For a merchant who has not replied, it is fair to give them 5 to 7 business days to answer before bringing the dispute to the issuing bank.
Make sure you have all of the evidence to make your case. This means having a photo of the defective item or if it is the wrong size or color. Have screenshots of the website to prove what you were promised, as well as a copy of the order, any communications you had with the merchant as well as your initial complaint. The more documentation you provide, the stronger your case will be.
The chargeback process takes time, a few weeks or even more than a month rather than hours or days. The issuing bank needs to communicate with the acquiring bank, who acts as a go-between with the merchant. This takes time. However, keep checking on the progress. Stay engaged but realistic about the time frame.
If the issuing bank denies your request, go to the ombudsman of your local consumer protection agency. The ombudsman’s job is to investigate complaints on a more in-depth and impartial level than an issuing bank will. This will also take some time, but those who do not succeed with a chargeback from an issuing bank can get their money back by going to a higher financial authority.