Visa Chargeback – A User’s Manual

     Visa Chargeback

Visa Chargeback

A Credit card chargeback occurs when a consumer disputes a Visa transaction through their issuing bank.  A Visa chargeback dispute is often to the benefit of the consumer since the burden of proof to indicate rightful purchase lies with the business.
In case the chargeback dispute is unsuccessful, the acquiring bank delays the payment for any chargeback dispute until it settles the matter.

     What is a Chargeback?

Chargeback is when a consumer disputes a charge on their Mastercard or Visa credit card bill. In simple words, a chargeback is a way for you to recover money that was “spent” on your credit card that should have been returned by the company that received it.

     The Chargeback Process

Firstly, once a chargeback claim is initiated, the issuing bank notifies the acquiring bank of the problematic transaction. The Visa Card holder’s account is credited the amount and the sales account has their funds withheld till the matter is resolved.

Every bank, however, has its own specific procedure in dealing with a chargeback claim.

     How to make a Chargeback Claim

Let’s take a look at how to make a chargeback claim

  1. Exhaust alternative options

This should be a last resort once it’s determined that the chargeback dispute is in a stand-off and they’re entitled to a refund under existing consumer law.

Banks judge every request for chargeback based using the “Reason Codes”. This allows them to decide to make a decision whether or not the claim is legitimate. If the claim doesn’t fit any criteria of the “Reason Codes”s, the chargeback is processed.

  1. Check the time limit

There is a time limit to issuing a chargeback claim. So don’t waste any valuable time negotiating with the merchant, if they seem unwilling at the first go, contact your bank immediately  and start a chargeback dispute.

With Visa, the duration after becoming aware of the problem is 75 days to 120 days.

However, some kinds of transactions define longer time before a chargeback can be initiated. For Visa its 540 days from transaction processing date.

  1. Make a clear claim

Start the process with the bank that issued you the card that you used. Some banks will require a form filled and depending on the case they may be asked to include further information.

Applicants are suggested to maintain copies of any correspondence.

The bank will contact the acquiring bank and try to recover the money, which may take a while. There have been successful claims, where customers are refunded their cash. Therefore, if you feel the merchant has created a reason for chargeback, take the chance and recover your money.

In conclusion, the chargeback process can be complicated and mistakes can cost you. makes the process simple and easy, putting your money back where it belongs – in your wallet.

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