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?
- When a customer did not receive a service/good.
- The product description on the company’s website does not match with an order.
- System error led to incorrect payment.
- Money is withdrawn a few times due to technical error.
- When a merchant changes the amount for a good unreasonably.
- The seller refused to accept the goods back even if all the conditions were met.
- A merchant did not receive funds to the account due to a technical error.
- A transaction was provided without the permission of the cardholder.
- 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Any client who wants to appeal the withdrawn amount and return the money has the right to apply to the bank with a corresponding statement, but the reason for starting the chargeback must be serious.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.