Chargeback Process

Overview

So many of our transactions are done through credit cards, bank transfers and online payment platforms. Although cash is sometimes used, the trend is moving away from physical money towards other means of buying and selling. One issue that may arise with non-cash transactions is getting the money back if there has been an error, a merchant or broker dispute or if money was stolen through fraud. 

Cash transactions are not always simple, but at least the issue of getting a refund tends to be between just two parties when physical money is involved–the buyer and the seller. However, chargebacks involve many parties–the buyer, the seller, the issuing bank and the acquirer. If there is a dispute or fraud, consumers may also need to contact a fund recovery service or even law enforcement. 

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 the best ways to pursue fund recovery whether the issue is merchant or broker dispute or if the charges were unauthorized. 

Different Types of Chargebacks

There are various situations that may require a chargeback. Usually, these are credit card chargebacks, but in some cases, fund recovery might be from online payment platforms. Paypal chargebacks are also possible, but the majority of these situations still involve credit cards. 

The two major types of chargebacks involve fraud and disputes. The chargebacks in the case of fraud involve charges that are unauthorized, by unknown parties and are dealt with directly by the issuing bank. In some cases, the people behind this fraud are pursued by authorities. 

The reason these are not dealt with often by fund recovery professionals is that issuing banks are usually prepared to refund money to their clients in such cases. The clearest example happens when a credit card is stolen, it is reported as stolen and any additional charges made after that are clearly by the culprit who most likely stole the card. The issuing bank will usually reverse the changes right away and law enforcement may take it from there. 

However, fund recovery professionals are more likely to deal with cases that are not so clear cut, for instance when there is a merchant dispute or a broker dispute. In these cases, a customer may say that a product was never delivered to them or a service was not what was expected or advertised. The merchant will then try to prove it was delivered in good condition or that the customer had no reason to expect more than what was provided. 

This dispute involves many steps and several parties who disagree concerning whether the money should be returned or not. In these cases, it can be uncertain who is responsible and what should be done, but the issuing bank will often act as judge and make the final decision. This is where customers may seek the help of a fund recovery service that can make the buyer’s case to the issuing bank. 

What Is Involved in the Chargeback Process?

The chargeback process begins with a customer who is unhappy with the service or the product. They should then bring their complaint to the merchant. They may say an item did not arrive or that it arrived broken or in bad condition. They could say it was the wrong color or not what they ordered or it was not what a customer should reasonably expect in that situation. 

The customer should give the merchant 7 days to respond to the complaint. If there is no response or if they refuse to refund the money, the customer then takes the complaint to the issuing bank. Many people believe the chargeback process involves the credit card company, but this is not really the case. The issuing bank or the bank that issues the credit card deals with these disputes. 

The issuing bank will ask the customer to provide proof of their dissatisfaction, such as a picture of the defective or broken item, a screenshot of the receipt, and communication they may have had with the broker or merchant. If they believe the customer’s case has merit, they will pass it on to the acquirer who works on behalf of the merchant or broker. The acquirer will present the case to the merchant and give them a chance to provide a refund or make a rebuttal explaining the reasons for not refunding the money. 

If the merchant does not want to refund the money and provides some evidence, such as proof that it was sent or that it was in good condition upon leaving the warehouse, the acquirer will present this to the issuing bank. From there, the issuing bank will examine the rebuttal of the merchant and will decide whether the case is over or whether they will pursue the case further. 

Help With the Chargeback Process

If the issuing bank decides not to pursue a credit card chargeback and if the customer still feels they deserve one, they can take the issue to regulators and a fund recovery service. The purpose of the fund recovery service is to inform consumers of their options and to suggest actions they can take for a successful chargeback. Fund recovery companies may get involved early on in the dispute or later on if the issuing bank does not pursue their case. 

The chargeback process can seem long and involved, but it is often successful with persistence and evidence. The burden of proof is often on the customer to prove they are not making a trivial complaint, committing friendly fraud, or just wanting to keep an item without paying for it or that they did not have inflated expectations about the product or service. Making this case without the help of an advocate or fund recovery service can be a challenge and that is why Penegeretur assists clients who seek chargebacks. 

Pengeretur professionals provide 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. 

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