2 How To Use A Credit Card Chargeback (With 13 Steps)

doylc.com - How To Use A Credit Card Chargeback - As a consumer, there are many occasions when you need to resolve a dispute with a particular merchant. If you try to return something but are unsuccessful, if you don't receive goods or services that you purchased, or if charges appear on your credit card statement that you didn't authorize, you may need to request a credit card chargeback. A chargeback is a remedy to obtain a refund of a disputed amount when dealing directly with the merchant is unsuccessful. This is a moderately formal process, but most people can handle it without needing legal counsel.

Resolving the problem with the merchant

1. Confirm the merchant's terms and conditions regarding returns. In some cases, the representative you are working with when trying to get a refund may not be fully conversant with the company's contracts, policies, or terms and conditions. You should familiarize yourself with the returns policy and identify the specific provision you are relying on.

Review the retailer's contracts, receipts, and other related documentation to determine if your situation qualifies you to legitimately receive a refund. Then mention your findings to the retailer to get a refund.

2. Ask the retailer for a refund. The first step in resolving your billing dispute is to work directly with the merchant. Many companies and businesses have policies that require them to give you a refund if you are unhappy with their product or service or have had a negative experience with their company.

3. Ask the retailer for a credit. If the retailer is unable or unwilling to give you a refund, you may find it easier to get credit to use on other products or services in the store.

4. Escalate your problem to the dealer's manager or senior customer service manager. If working with a seller or customer service representative does not lead to a solution, you should try speaking to a manager or owner. In most cases, if you take the time to escalate your situation to their boss or to a leadership team whose goal is to maintain customer satisfaction, dealers will work with you to resolve issues.

5. Mention to the merchant that you will file a chargeback if your issue isn't resolved. Since credit card chargebacks are costly for most businesses and businesses, they will most likely work with you to resolve the issue and avoid a credit card chargeback.

6. Write a formal letter of complaint to the retailer. Submit your complaint in writing. Explain the details of your original purchase, if you made one, and the reason for requesting a refund. Even if the retailer ultimately doesn't agree and gives you a refund, the letter will include documentation of your complaint. You need this documentation to proceed with a chargeback.

Be sure to follow the credit card company's requirements to request a chargeback and meet all deadlines.

Applying for a credit card chargeback

1. Determine if using a credit card chargeback is applicable to your situation. If a merchant won't work with you to resolve your issue, your next step is to file a chargeback through your bank or card issuer. In general, a chargeback can occur for one of three different reasons:

Request a chargeback if your credit card statement contains fraudulent charges. If you are billed for products or services that you did not purchase or authorize, you are eligible to use a credit card chargeback.

Request a chargeback if you don't receive a full refund for a returned item. In some cases, a retailer can take back the item you purchased but cannot issue a full refund to your credit card. In this case, you could use the chargeback to dispute the partial return right.

Use a chargeback when you don't receive a product or service that you paid for. For example, if you ordered a product online and never received it in the mail, a retailer may dispute the order and refuse to give you a refund.

2. Act immediately. You have a limited time to resolve your complaint after the transaction date. The time limit may vary depending on state law, but generally you have 120 days from the date of the transaction to file your complaint.

The period starts from the date of the transaction. Taking the time to try and resolve the issue with the merchant can be valuable as a first step, but don't lose the deadline to file the chargeback complaint.

3. Notify your bank or credit card issuer of the dispute. You must tell the bank or credit card company that you have a dispute. Usually all you have to do is call the phone number printed on your credit card for customer service. Let the clerk know you're calling to dispute a charge on your card. In order to proceed, you must provide the details of the dispute. In particular, you must provide the bank with the following information:

The date of the first transaction. If your dispute began with a purchase you made, you should provide the date of that purchase. Conversely, if you are disputing a charge that appears incorrect on your card statement, provide the date that appears on that charge.

The amount of money in question. You should tell the bank the exact amount. If you have a receipt or a copy of your credit card statement, you should be able to find the amount there.

The efforts you have already made to solve the problem. Provide the bank with as many details as possible. This includes the names of any salespeople or other store associates you spoke to, the general content of those conversations, and their responses to your inquiries.

4. Get a temporary chargeback. In most cases, you will be credited this amount after phoning your bank to report your dispute. This is a temporary credit, subject to later confirmation of your dispute.

5. Fill out a chargeback report. After you have made your first report to the bank, you will usually be given a formal report form. You must complete this form in writing with the details of your dispute. Fill out the form as completely as possible and provide as many details as possible.

Use your receipt and credit card statement to fill out the form correctly.

Be precise. Provide all the necessary facts to detail your dispute, but limit your answers. Getting wordy can only confuse the issue.

See the complaint letter you sent to the retailer. You should attach a copy of this letter to the completed chargeback form.

6. Provide documentation to help process the chargeback. In most cases, you will need to provide receipts or contracts from the transaction. Make sure your records are complete and include everything when submitting your full report.

7. Get a final decision. After reviewing your written report, the bank or credit card company will make a final decision on whether to maintain or reverse the previous temporary chargeback. If the bank determines that your documentation and statements support your position, you will receive a report in your favor and the temporary balance will remain in your account. On the other hand, if the bank does not support your claim, the temporary credit will be reversed and the initial fee will be charged.