Credit Card Chargeback Rights
- A chargeback occurs when you contact your bank and request a reversal of charges on a credit card transaction. If the transaction was not related to a fraudulent purchase, the bank will typically require that you first speak with the merchant about returning the item for a refund. Once you have confirmed that you have attempted to recoup your money, the bank will begin an investigation and contact the merchant for more information. The bank may require a statement from you in writing. The process may take up to two months before the credit card company makes its decision. If you have truly been wronged by the merchant or fraud has occurred, the credit card company will likely decide in your favor. The money is then credited back to your card.
- The most common reasons that chargebacks occur are because a customer has been overcharged, is dissatisfied with the product, did not receive the product, had her card stolen or did not authorize the charge.
- There are two types of chargebacks: billing errors and claims and defenses. Billing errors, to include unauthorized charges, such as being overcharged or charged for the wrong item, must be reported within 60 days of the charge appearing on your statement. Under claims and defenses, you may file a chargeback within one year of the charge if the following conditions are met: the charge was for more than $50, you have not yet paid off the charge amount, the charge occurred at least 100 miles from your home and you made a reasonable attempt to resolve the issue with the merchant.
- If you elect to file a chargeback, keep copies of all correspondence with the merchant. Doing so may help expedite the claim.
- Often the threat that you intend to file a chargeback may be enough to convince a merchant to work with you. If your first attempt to resolve the issue does not work, informing the merchant of the impending chargeback may be all it takes. This way, you will be able to recoup your money much sooner than if you were to file a chargeback.
