| A chargeback is the restoration of expenditure to a | | | | against transactions on their statement that they deem |
| consumer's credit card account when they dispute a | | | | to be incorrect or fraudulent. |
| charge issued to their card. | | | | Chargebacks are initiated for various reasons: |
| Before filing a chargeback with their credit cards' bank, | | | | customer discontent with the product received, fraud |
| however, a consumer should first call the merchant | | | | on the part of the seller or fraud on the part of the |
| from whom they purchased the product in an attempt | | | | buyer including stolen credit cards use. Other reasons |
| to resolve the issue by way of a mutual agreement. | | | | can include data entry error, untimely processing which |
| This can be a simple step and may stop the customer | | | | might cause cancellation of the order by the customer |
| from having to file a chargeback. Perhaps the | | | | and the creation of a chargeback, a change of mind |
| purchase was not ordered by an authorized person | | | | on the consumer's part, and sometimes even the |
| and the company will accept a return and credit the | | | | customer not remembering ordering the product. |
| account. Perhaps the product was received in poor | | | | Sometimes the reason is technical problems between |
| condition, or not received at all, and a simple | | | | the bank and the merchant that causes a double billing, |
| replacement will appease both parties. | | | | also known as duplicate charging. There is always a |
| In the case of recurring billing, a customer can request | | | | risk of a chargeback when there is a problem with the |
| cancellation. If that does not happen, then they have | | | | process of credit card authorization; this can lead to a |
| reason for complaint. Each purchase will have its own | | | | charge being filed when it should not have been. |
| story and it is wise to try to settle the issue on a | | | | Whatever the reason for the issuance of the |
| customer to merchant basis before attempting the | | | | chargeback, it can take months and maybe longer to |
| drawn out chargeback process. | | | | bring the issue to a conclusion. |
| If this fails, initiating a chargeback is the next step for a | | | | A consumer's credit card dispute is not automatically |
| customer to take in the recovery process. A | | | | recognized or accepted by the bank as having validity. |
| chargeback is a type of consumer protection written | | | | There must be proof by the consumer and, if the bank |
| into the bank's stated operating regulations that | | | | rules the dispute is not valid, they decline the dispute |
| provides the customer the ability to file a complaint | | | | and charge the customer a processing fee. |