How To Send A Chargeback Request To Protect Your Finances

When credit card transactions go wrong, knowing the chargeback meaning and sending a request can help you secure your finances. It plays a vital role in providing security and confidence to you as a cardholder against fraud or incorrect product deliveries from merchants or retailers. 

You can place a chargeback request in case of receiving damaged goods when your cancellation request is not actioned. You can do the same when you’ve swiped your card but have not received any product. This request is valid for a number of transactions. However, this process needs the cooperation of the relevant merchant so you can get the chargeback credited easily. 

Choosing a reliable credit card issuer with a robust dispute resolution cell and faster chargeback processing is also important. This way, you can request a chargeback from credit card companies easily. 

What is a Chargeback Request?

Credit cards come with a lot of perks and benefits. Chargeback is considered one of the vital advantages of safeguarding you from certain frauds related to payments and purchases. It is the process of reversing the payment by the credit card issuer during:

• Failed product or service delivery: If the merchant has been unable to provide the service/ product for which you have made a payment
• Product issues: If the delivered product is damaged or is different from what you have ordered
• Unauthorised payment: If a purchase is made without your knowledge
• Incorrect transaction amount: If the merchant charges you an amount that does not match the product/service delivered or completed
• Automatic deduction for cancelled services: If you’ve cancelled a subscribed service and still been charged for it 

Also Read: Charges for Credit Card Cash Withdrawal

How to File For a Chargeback

You can dispute a chargeback with your credit card issuer in the following steps:

• Contact your credit card provider and give all information regarding the dispute like communication with the respective merchant and purchase-related data. This will help the card issuer in resolving the dispute. 
• After that, your credit card issuer may ask you to fill out the claim form. You can download the form and submit it through e-mail after filling in the necessary details.
• You may receive an interim chargeback credit. This is a temporary credit issued by the card issuer to your account until the dispute gets resolved. 

Guide to Chargeback Processing

When you request your credit card issuer to look into an invalid transaction, they may ask for certain details to assess your request:

1. Merchant details 
2. Purchase receipt
3. Communication with merchant

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After the evaluation, your credit card provider will initiate the interim chargeback credit. Then, the card issuer reaches out to the respective merchant regarding the dispute. The merchant can accept or challenge the chargeback:

If the merchant accepts the chargeback

If the merchant challenges the chargeback

Your credit card provider will transfer the amount deducted from your credit limit back to your accountThe amount is permanently deleted and not included in your credit card statement

The merchant submits the rebuttal form with evidenceYour credit card provider either reverses or upholds the chargeback after evaluating the evidenceIf the decision is in your favour, the chargeback amount credited to you will be permanentIf the decision goes in the merchant’s favour, then the interim chargeback will be reversed, the amount will be included in your statement, and you will have to pay the bill by the due date

In case the merchant does not agree with the card issuing company, it can appeal the decision by involving arbitrators. VISA, RuPay and other card networks may now be involved, and their decision will be considered final. The fee for the arbitration process will be the responsibility of the losing party. 

Also Read: How to Read Credit Card Statements

How Chargeback is Different From a Refund

Refunds can be carried out quite easily and involve minimal processes. They are thus different from a chargeback claim which is a complex procedure involving the credit cardholder, credit card issuer, merchant and even credit card network providers like Visa and MasterCard. 

While the merchant itself offers you a refund, a chargeback is initiated by the credit card company. Similarly, you contact the merchant directly in case of a refund and not the issuing company. Refunds are also much faster than chargeback processes, which may involve up to 4 months or more.

It is essential to understand the filing of a claim for chargeback, meaning you can enjoy a stress-free experience in case a fraud occurs. If you’re looking for a credit card with increased security, you can opt for the Fibe Axis Bank Credit Card. It is India’s first numberless credit card with zero annual or joining fee.

What’s more, you get up to a flat 3% cashback on eligible transactions, waiver on fuel surcharge, free access to domestic airport lounges and a hassle-free UPI payment option. So, what are you waiting for? Download the Fibe App and apply for it now to enjoy unlimited perks.

FAQs on Chargeback

Is chargeback a refund?

Chargeback, meaning the system that allows you to safeguard your finances in case you feel you have been cheated, is different from a refund. It involves contacting the credit card company and raising a dispute through a claim form instead of contacting the merchant directly. 

What is an example of chargeback?

If you’ve cancelled a subscribed service and the service provider still charges your credit card for it, you can file a chargeback request.

How does a chargeback claim work?

You can file a chargeback claim by contacting the credit card issuer, who will then reach out to the merchant. Your transaction details are then discussed, and either accepted or the merchant files a rebuttal. 

What is the chargeback time limit?

Usually, you can file a claim 90 to 120 days from the date of purchase. However, it depends on your credit card company.