New Delhi: A chargeback is a helpful consumer protection tool that allows credit cardholders to reverse a transaction when something goes wrong with a purchase. Whether it’s a case of fraud, a billing error, or a product or service that didn’t meet expectations, chargebacks give customers the right to dispute a charge and request a refund through their credit card issuer. This process acts as a safety net, offering reassurance and financial protection when purchases don’t go as planned.
When you file a chargeback, your credit card issuer steps in to help resolve the issue. They’ll temporarily credit the disputed amount to your account while they investigate the claim. During this time, the bank reaches out to the merchant to get their side of the story. If the bank decides your claim is valid, the refund becomes permanent. But if the chargeback is denied, the amount will be charged back to your card. ()
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Chargebacks play a key role in protecting credit card users. They help resolve issues such as:
– Unauthorized transactions made without the cardholder’s consent
– Being charged twice or billed incorrectly
– Goods or services that were paid for but never delivered
– Items that arrive damaged, faulty, or not as described
– Strengthening trust between customers and their credit card issuers by offering a fair way to handle disputes
You may want to file a chargeback if:
– You notice unfamiliar or unauthorized transactions on your credit card statement
– The merchant refuses to correct a billing error
– You receive a completely different product or service than what was promised
– The goods you received are damaged, faulty, or defective
– You’re charged for a subscription or service after you’ve canceled it
– Technical issues lead to incorrect billing or affect your credit score
Most chargebacks must be filed within 60 to 120 days of the original transaction, depending on your credit card issuer’s policy. ()
Before filing a chargeback, it’s a good idea to first contact the merchant directly. Many issues can be quickly resolved this way without going through the formal dispute process.
Chargebacks should be used as a last resort—only when you’re unable to reach a fair solution with the merchant. Misusing the chargeback process can lead to penalties from your bank and may even affect your credit card privileges in the future.
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