Credit card chargeback denied
Why was my credit card chargeback denied?
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Credit card chargebacks are a common form of consumer protection that allow you to get your money back in specific situations. Whenever you request a chargeback, your credit card provider reviews the details of your request to assess if it’s a valid claim. If approved, the credit card company will refund the transaction. If it’s not a valid request, it will be denied.
There are many reasons why a chargeback can be rejected and it’s important to understand how the process works.
When can I request a chargeback?
A chargeback is only available under certain circumstances:
- Unauthorised transactions. These include unrecognised or fraudulent transactions that appear on your account, which have not been authorised by you or by an additional cardholder.
- Different transaction amounts. If the amount on your account statement doesn’t match the amount on your receipt, you may be eligible for a chargeback.
- Duplicate processing. This happens when the merchant accidently charges you twice.
- Cancelled recurring transactions. This happens when a recurring transaction goes through even though you have cancelled it.
- Faulty or defective purchases. If your purchase arrives with faults or defects or it’s not as described and the merchant refuses to refund you, then you can request a chargeback.
- Unfulfilled services. These include services that have been paid for but not rendered. For example, if you booked and paid for a company to clean your home and they never showed up.
- Missing or undelivered items. This commonly means that the goods have not arrived.
- Missing refunds for returned items. This happens when the merchant has accepted your return, but fails to process the appropriate refund to your account.
In most cases, your credit card provider will advise you to first approach the merchant directly and try to resolve the issue. This is usually effective since most merchants prefer to avoid chargebacks. If approaching the merchant doesn’t work, you can request a chargeback.
How to request a chargeback
Each credit card provider requires that you take specific steps to complete a chargeback request, which you can easily clarify by contacting them. A request typically involves the following steps:
- Contacting your provider and explaining your situation.
- Filling out a chargeback or dispute form.
- Providing relevant documentation as requested (e.g. purchase receipts, account statements, written cancellation of a direct debit).
Upon receiving your chargeback request, your credit card provider will review it, which can take up to six months. If approved, your credit card provider will deduct the amount owed from the merchant and credit it back into your account. The entire process can sometimes take as long as 12 months to be finalised.
Why was my credit card chargeback denied?
The most common reasons why an issuer might deny a credit card chargeback include:
- You provided incorrect or insufficient information. This happens if you made mistakes filling out the chargeback request, lied or did not provide enough required details.
- You’ve already been compensated. You cannot be compensated twice for the same transaction, so your chargeback will be denied if you have already received a cash refund from the merchant.
- You’re eligible for an insurance claim. Your chargeback may be denied if you can make an insurance claim.
- It’s too late to apply. Most issuers have specific time limits for requesting chargebacks. You must apply within your card provider’s specified time limit or your chargeback request will be denied by default.
- The merchant successfully proves the transaction. During the chargeback investigation process, merchants are given the opportunity to dispute the chargeback request. If they are able to provide evidence that the transaction was correctly processed and that all items were delivered to you in good order, your chargeback request may be denied.
How to deal with a denied chargeback claim
If your credit card chargeback is denied, you can contact the Financial Ombudsman Service (FOS) to dispute this decision. You can lodge an application online and, once received, the FOS will inform your credit card provider of your dispute and offer them 21 days to resolve the matter directly with you. After that, unless a resolution has been reached, the FOS will begin an investigation. You will be regularly updated about the progress of your dispute.
Depending on your circumstances, you may also be able to consider the following options:
- Submitting an insurance claim
- Contacting the merchant directly
- Looking into other dispute or resolution services (eg, those provided by PayPal or eBay if relevant)
Generally, you should have no problem getting a successful chargeback if you apply for it within the eligible period and are careful to provide all the necessary details and documentation. In some cases, your chargeback may be denied because you’re eligible to make an insurance claim for the item. If it gets more complicated than that, you can always file a dispute.
Understanding how the whole chargeback process works beforehand will help ensure that you get what you’re entitled to.
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