problematic-looking-man-with-creditcard

Credit card chargeback denied

Information verified correct on April 29th, 2017

Why was my credit card chargeback denied?

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:

  1. Contacting your provider and explaining your situation.
  2. Filling out a chargeback or dispute form.
  3. 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.

Back to top
Was this content helpful to you? No  Yes

Related Posts

ANZ Platinum Credit Card - Exclusive Offer
ANZ Platinum Credit Card - Exclusive Offer

Interest rate

19.74

Annual fee

87
St.George Vertigo Platinum
St.George Vertigo Platinum

Interest rate

12.74

Annual fee

99
NAB Low Rate Credit Card
NAB Low Rate Credit Card

Interest rate

13.99

Annual fee

59

Ask a Question

You are about to post a question on finder.com.au

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At finder.com.au we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the finder.com.au privacy policy, receive follow up emails related to finder.com.au and to create a user account where further replies to your questions will be sent.

4 Responses to Credit card chargeback denied

  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.

Ask a question
feedback