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Credit Card Chargeback Denied – Know The Reasons Why

Information verified correct on December 6th, 2016

Credit card chargebacks today have become very popular. In the last decade, this issue has become so popular that most credit card companies have made it part of their criteria.

In simple terms, a credit card chargeback occurs when credit card companies such as: American Express, Visa, Mastercard, attempt to have a purchase refunded either due to fraudulent charges or buyer's remorse.

Chargebacks have become one the most common ways that consumers are able to fight unfair sellers and merchants who try to commit fraud and steal money away from them.

Types of frauds and chargebacks

Fraud or Lying

As a consumer, you always have the right to go to your credit card company and report any charge that you feel has been put on your account fraudulently. The next step is for the lender to go to the merchant and present your claim. If the merchant in any way feels that you are lying or not presenting the correct facts, they too can go back to your lender and claim that they are in the right and will not refund you the money.

In these instances, your lender will immediately require that the merchant provide a proof of sale or receipt that verifies that the sale was completed by you, voluntarily. If the merchant can provide verifiable evidence, the credit card company will have to go with the merchant and deny your chargeback request.

Too Late

Most credit card lenders have a time window in which they require you to file your claims. Usually this is time frame is 60 days. The sooner you place a request for a chargeback, the more likely they will be able to process and complete it for you. It is not advisable to file a chargeback after 30 days as the credit card company needs time to process and allow the merchant to respond.

If the 60 day time limit lapses without a resolution being met, then you will lose your claim to a chargeback. Even in instances where you are correct and rightful to your money back, if you are out of the time timeframe you cannot get your chargeback.

Notify the Merchant First

Merchants, for the most part, want to clear up any issues directly with the customer if possible. Not only does this save time but it also stops the credit card companies from having to get involved. Merchants are much more willing to cooperate with the customers directly than having to deal with credit card companies, as it makes them feel as if they are being fraudulent or cheating a customer out of money.

If you contact the merchant in a professional manner and the merchant refuses to give you your money back, then you have the right to claim a chargeback through your credit card company. The merchant will usually oblige to credit card companies as they apply more pressure. Either way, as long you are timely and professional the usual result will be you getting your chargeback successfully.

Reasons why some merchants do not accept credit cards

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4 Responses to Credit Card Chargeback Denied – Know The Reasons Why

  1. Default Gravatar
    Anonymoose | January 12, 2015

    I ordered something that had a 4 month lead period from Pumaspeed, a car parts company. The people then screwed me over. I had no way to know there was a dispute going to arise from the matter; and statute provides 5 years for civil financial matters. Can banks be compelled by courts to action a charge back?

    • Staff
      Jonathan | January 16, 2015

      Hi Anonymoose,

      Thanks for your question,

      In regards to chargebacks or disputed transactions this can be achieved through contacting your respective bank, by giving their customer service team a call or visiting a local branch. Please see this page regarding further information for reversing a credit card transaction. If you would like to take legal action it is recommended that you seek legal advice, free legal helplines are available in every state.

      I hope this helps!

      Cheers,

      Jonathan

  2. Default Gravatar
    | March 7, 2014

    If you pay for goods and do not find out they are not being delivered until 7 months later, can you report within 30 days of when you reasonably should have known the contract was not going to be honoured or the goods not going to be supplied?

    • Staff
      Jacob | March 7, 2014

      Hi, Johnathan.

      Thanks for your question.

      The time frame starts from when the transaction is charged to your account. The bank adheres to the guidelines set by American Express, Visa and MasterCard. Claims for charge backs can be valid periods between 75 to 125 days from when the transaction takes place. The time frame varies depending on the reason for the charge back. If you think you have a claim for a charge back, you should contact your lending institution immediately.

      I hope this helps.

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