Credit Card Disputes


Most consumers use credit cards daily, from purchasing groceries at the supermarket to shopping at eCommerce sites for everything from jeans and supplements. With all of these transactions, it is likely that a credit card dispute requiring a chargeback may arise. Therefore, it is important that every consumer familiarize themselves with the chargeback process and have a strategy in place to settle credit card disputes. 

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.

When Do Credit Card Disputes Arise?

Credit card disputes arise when a customer wants to receive a refund in the form of a credit card chargeback and the merchant or broker does not agree. This happens when a customer feels they have not received a service or product that was consistent with what they paid for. The merchant argues that they have fulfilled what should be reasonable customer expectations. 

When this happens, the customer will bring their complaint to the credit card company, or rather the bank that issues the credit card. Many people believe they are speaking directly to the credit card company when they have a financial dispute with a merchant, but the number they are directed to actually belongs to the issuing bank.

What is the Credit Card Dispute Chargeback Process?

Often the issuing bank will request the customer speak to the merchant again. This may seem frustrating, but there is a good reason behind this request. A customer should give a merchant 5 to 7 business days to reply to a request for a chargeback.

 If the merchant has not answered, it is a good idea to contact them again. If they disagree about offering a refund, it may be best to contact them again to ensure that the problem was not one individual that you dealt with. They may say “yes” the second time around.

The reason to recheck this is that merchants in today’s environment of reviews and social media will usually want to preserve their positive image and may be more likely to agree to refunds than in the past. Mentioning to them that you intend to leave a negative review or post about your experience on social media may convince them to give a refund. Double-checking is an effective way of avoiding a prolonged credit card dispute process. 

If the merchant is solid in their refusal to give a chargeback, then it is time to bring a detailed complaint to the issuing bank. This complaint should include a photograph of the item if it is damaged or the wrong color. If you say it did not arrive, be aware that the merchant will be asked to provide evidence of shipping. 

The issuing bank is unlikely to solve a complaint in the customer’s favor without evidence. The customer’s word alone is no longer automatically trusted, because of the phenomenon of “friendly fraud.” This occurs when a customer buys an item online, claims it is defective or never arrived, and exploits the chargeback process to get their money back. For this reason, customers are asked to provide proof that the item or service was unacceptable. 

The issuing bank will decide whether the customer’s complaint has merit and if so, will pass it on to the acquiring bank, or the merchant’s bank. The acquirer will receive a reply from the merchant, who will either agree to the chargeback or provide reasons why they will not give one. This reply is sent to the issuing bank which will then decide whether they are satisfied with the reasons for the merchant’s refusal or if they wish to pursue the customer’s complaint further.

How to Improve the Chances of Success in a Credit Card Dispute?

A customer must prove that the product or service they received was unacceptable or not received. This means gathering plenty of evidence, including photos of the item purchased, copies of a webinar if that is the service provided, screenshots of the merchant’s website or communications to demonstrate what was initially promised, and other information. 

It also helps to have some research on the company. For instance, if the merchant or broker has similar complaints from clients, a slew of bad reviews or warnings from consumer groups, that can strengthen your case. Given the existence of “friendly fraud” and the fact that the issuing bank does not want to create bad feelings with merchants, customer complaints are not always taken at face value but require support and evidence. 

Although many customers find it easy to get a chargeback in the case of unauthorized charges or fraud, the situation of credit card disputes is very different. In suspected fraud, unauthorized charges are made to the card after it has been reported missing or stolen. This is a clear case and is often resolved in one day by the issuing bank through a reversal of charges. However, a credit card dispute between a customer requesting a chargeback and a merchant is more complex and requires both sides to make their case convincingly. 

Seeking the Aid of Fund Recovery Services

To improve the chances of chargeback success in a credit card dispute, customers find that using a fund recovery service can be effective. Just as people usually hire attorneys if they go to court, it makes sense to have a fund recovery advocate present your case to the issuing bank. Fund recovery experts have in-depth experience with credit card disputes and chargebacks and can help you retrieve your funds successfully. 

To seek the aid of a fund recovery service, ensure you have all of the documents you need, including photos of the item, evidence of the service provided, and copies of communication with the merchant. The fund recovery service can investigate further and do in-depth research that will bolster your case. 

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. 

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