A chargeback is a feature of credit cards that allows you to dispute a transaction. You can initiate a chargeback if the merchant violated the cardholder agreement, committed fraud against you, or provided inadequate goods or services.
Credit card chargeback
What is a credit card chargeback? Well! A chargeback is a consumer’s right to dispute a charge on their credit card. It’s an option that allows you to dispute the charges on your credit card and get your money back, or at least have the dispute reviewed by the issuer of your card (the bank or credit union).
If you’ve done some shopping recently, chances are you’ve seen a few announcements from merchants saying that they accept all major debit and credit cards. What does it mean when a merchant says they accept all debit and credit cards? A merchant may say that because he accepts Visa, MasterCard, American Express and Discover as well as other payment methods like cash or check—but not always! That statement might also be based on whether he wants to make sure his customers can pay using any type of plastic at checkout time.
How to get a chargeback
Your credit card company will want to see proof of the transaction and why you are disputing it. For example, you can dispute a transaction within 60 days of the statement date, which is usually on the first or second page of your monthly statement.
If you have a dispute with a merchant and win, they may refuse to refund your money. In this case, contact your credit card company directly and ask them to initiate a chargeback on your behalf. The best way to do this is by contacting customer service by phone or internet chat so that they have all the relevant information at hand.
SoFi professionals say, “Chargebacks are used to reverse a payment after a billing error, unauthorized credit card use, or the failure to deliver a product or service.”
Chargeback timeline
When you file a chargeback (or what the card companies call a “dispute”), it can take anywhere from two to ten days for the issuer to process your request. The issuer will then contact the merchant’s bank and ask them to refund your money.
It usually takes another five business days for them to do so, and then it’s another five business days before they actually issue that refund onto your credit card account.
Chargebacks and your credit score
With the help of your credit card, you can protect yourself from fraud. You can also use it to dispute a charge that you feel is inaccurate and unfair. However, not all chargebacks are good for your credit score.
In general, when you initiate a chargeback and win the dispute with your issuer—meaning they agree with what you were saying about the transaction and reverse their decision—this will show up on your credit report as an “adverse” event. It means there is now money owed on the account after winning a dispute in favor of the customer.
The chargeback is a way to dispute a charge on a credit card. If you think the charge was made in error, you can call your bank or credit card company and ask for it to be reversed. However, there are some downsides to this process that you should consider before deciding whether or not to do one.
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