Frequently asked questions: Chargebacks

How does a chargeback work?

Chargeback is a transaction reversal made to dispute a card transaction and secure a refund for the purchase. Chargeback works by the bank withdrawing funds that were previously deposited into the recipient’s – usually a retailer – bank account and putting them back into your account.

Do chargebacks hurt credit score?

Losing a credit card account can negatively impact a consumer’s credit score. If a merchant successfully disputes an illegitimate chargeback, the consumer might have to pay the accompanying chargeback fees.

Is there a time limit on chargebacks?

The issuer has leeway in some cases to alter the time limits offered to the cardholder, but the customer must act within that predetermined time limit. In most cases, cardholders may only file a chargeback within 120 calendar days of the Central Site Business Date, with some codes requiring shorter timeframes.

Can you do a chargeback on a bank transfer?

Nope – no protection here. Chargeback applies to credit and debit cards, not bank transfer payments. Police can do some kind of trace on the account to get the recipients details. You still have legal options open to you – if you can get full details of the recipient.

How do you charge back?


  1. File a chargeback request with your credit card company. …
  2. Wait for the credit card company to notify PayPal of the chargeback request. …
  3. Provide the necessary information to support your chargeback claim. …
  4. Wait for the credit card company to get back to you with their answer regarding the PayPal chargeback.

Can a chargeback be reversed?

A chargeback happens when a buyer asks their credit card issuer to reverse a transaction that has already cleared. This can mean that a payment you’ve received in your PayPal account could be reversed, even if you’ve already posted the goods – which can of course be frustrating.

Is there a time limit on disputing credit card charges?

Your right to dispute unauthorized charges comes from the Fair Credit Billing Act. … While the FCBA gives you 60 days, some credit card companies allow you a longer time to dispute charges. For example, American Express typically allows disputes within 120 days of the charge.

How do I dispute a charge on my Visa card?

Contact the merchant to ask for a refund or other corrective action. Write a complaint letter seeking corrective action; make sure to keep a copy. Contact your credit card issuer if the merchant won’t assist you. Tell the card issuer you would like to dispute a charge

How do I stop payment on my credit card?

You can tell the card issuer by phone, email or letter. Your card issuer has no right to insist that you ask the company taking the payment first. They have to stop the payments if you ask them to. If you ask to stop a payment, the card issuer should investigate each case on its own merit.

Can I call my bank to cancel a transaction?

Can I stop or cancel a transaction while it’s pending? … It generally takes 3 to 5 business days to process a transaction, although it can take up to 10 business days or longer. You need to wait until the transaction is complete and is no longer a pending transaction if you wish to dispute it.

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    A customer who successfully files a chargeback is nine times more likely to file another one.
    When customers realise how easy it is to file a chargeback, they are incentivised to do it again.

    86% of all chargebacks are probable cases of friendly fraud.
    Despite merchants’ efforts at preventing criminal fraud, much of their losses are from
    friendly fraud: a practice which is difficult to identify and nearly impossible for merchants to prevent.

    81% of customers admit to filing a chargeback out of convenience.
    Most customers can’t see any difference between a chargeback and a standard return.