A chargeback is a procedure that allows a buyer to dispute a transaction and request a refund of funds debited from their account or credit card. This mechanism of customer protection is designed to combat incorrect or fraudulent transactions and provides an additional level of security for online purchases.
Typically, a chargeback can be initiated in the following situations:
- Poor quality goods or services: If a buyer receives goods or services that do not meet expectations or the description provided, they may request a chargeback to recover the spent funds.
- Unauthorized transactions: If money has been debited from a card without the owner's consent, or if a transaction is made by fraudsters, a chargeback can be used to reclaim the funds.
- Non-receipt of goods or services: If goods or services have not been received despite payment, the customer may request a chargeback.
The chargeback process usually follows these steps:
- Filing a complaint: The buyer contacts their bank or payment system with a request for a chargeback, providing necessary information about the disputed transaction.
- Reviewing the complaint: The bank or payment system begins to review the complaint, verifying its validity and gathering necessary data.
- Decision-making: After analyzing the provided information, the bank or payment system makes a decision on whether to proceed with the chargeback or reject it.
- Refunding the funds: In case of a successful chargeback decision, the transaction amount is returned to the buyer's account, and measures may be taken against the fraudulent seller.
Chargeback is an important mechanism for protecting consumer interests and provides an additional level of security for online purchases. It allows customers to feel protected and confident that their financial interests will be safeguarded in case of disputed situations.
