A Chargeback may be presented against the Merchant’s account by the Issuing Bank with no attempt to first settle a dispute. It then falls to the Merchant to dispute the Chargeback.

A chargeback is a general procedure for canceling a transaction by payment systems and further disputing. In other words, this is a refund to the cardholder. A chargeback could be obtained from almost any institution or organization if you transferred money to the bank account of a legal entity from a card.

When a customer can initiate a chargeback?

  1. When a customer did not receive a service/good.
  2. The product description on the company’s website does not match with an order.
  3. System error led to incorrect payment.
  4. Money is withdrawn a few times due to technical error.
  5. When a merchant changes the amount for a good unreasonably.
  6. The seller refused to accept the goods back even if all the conditions were met.
  7. A merchant did not receive funds to the account due to a technical error.
  8. A transaction was provided without the permission of the cardholder.
  9. Other serious reasons to consider a payment invalid.

Any client who wants to appeal the withdrawn amount and return the money has the right to apply to the bank with a corresponding statement, but the reason for starting the chargeback must be serious.

According to the rules of international payment systems, a protest of payment is possible in case of an unauthorized payment, a dispute between a customer and a merchant and service company, fraud and error in processing a payment.