How to make Chargeback?

A complete knowledge base on how to make a Chargeback

What is a chargeback, who are its participants and for what reasons you can return the money, we wrote in previous articles. Now you will learn the algorithm of actions for competently carrying out the chargeback procedure. Our practice has shown that with strict observance of all points of this instruction, the probability of a return increases significantly.

You can count on a chargeback if:

1) no more than 540 days have passed (Visa, MasterCard);

2) payment was made by bank card on the Company's website;

3) the recipient company is indicated in the purpose of the payment (not always the name indicated on the site);

Preparatory stage: We consider this stage the most important. You will be required to prepare the maximum amount of information necessary to write a claim. Still, you fell for the "bait" of a company that professionally deceives people and stores stolen funds abroad. You will need to properly prepare. For this you will need:

1) Your passport data;

2) card number;

3) bank statement for the period of transfer of funds of the company;

4) correspondence with company employees;

5) contract and other documents signed with the company;

6) screenshots from the official website, which indicate the services or goods promised by the company.

Termination with a broker:

The official policy of all Payment systems is the same: before starting a chargeback, you must definitely try to resolve the situation with the seller. And only if the seller refuses or ignores you, you can turn to the contestation procedure. Logically. Firstly, it will help reduce the number of applications to banks. Secondly, the brokers themselves in some cases (strictly at their request) return the money after being asked to return the money.

The application can be made in free form. Send to the e-mail specified in the contract, or on the company's website.

Chargeback Application:

1) Almost all Banks offer to fill out a standard application form for contesting transactions. It contains basic data about the cardholder, the seller company, and the current situation. The form is easy to read for a bank specialist, but not beneficial for the initiator of the chargeback. According to the template form, the bank will accept your application and send it to the acquiring bank, but the response from the respondent company may aggravate the situation and strengthen its position in the dispute.

2) For the operational processing of information, payment systems (PS) came up with codes. Be sure to check them out in the Chargeback Codes article. Based on your PS and the situation, choose the most suitable for you. Also in this article we give our recommendations.

3) We recommend that you carefully read what the company specifically promised and compare with what it did; note which items have not been fulfilled, and with the evidence base write a statement about the controversial transaction.

Important! The application should be made second in the case: put a brief description, indicate clear requirements, refrain from emotions.
Focus on Chargeback Fraud: Detection & Prevention
Bank decision on Chargeback

The bank will register your appeal, assign a number and within 15-60 days, depending on the workload of the claims department, will give an answer. The answer might be:

1) Request for additional information. The bank is not satisfied with something (poor quality of screenshots, weak evidence base, insufficient information);

2) Refusal to carry out the chargeback procedure. Possible reasons: non-compliance with the rules of the Payment systems. in the expired period, low probability of return in the opinion of the Bank, mistake of a banking specialist;

3) Extension of terms. This means that your application is still being processed, in most cases, the chargeback has been issued and the documents have been sent to the Seller's Bank;

4) Documents from the Company. You need to read the answer and prepare a competent refutation of the evidence

5) Return of part of the funds. It is possible to reapply to dispute the full amount, but the likelihood is low;

6) Full refund.

Pre-arbitration (second charge back)

Pre-arbitration in the Vis payment system, second chargeback - MasterCard, re-chargeback stages, in case one of the parties disagrees with the results of the first chargeback. Not every Bank is a supporter of repeated chargebacks, and this is the first "guard" for us on the path to justice. In order for the Bank to launch pre-arbitrage (second chargeback), new evidence or a change in strategy is needed. At this stage, there are successful precedents, so we do not save energy for it.

Fraud and chargebacks guide – Trust Payments
Arbitrage Chargeback

If a payment system participant does not agree with a response to a pre-arbitration settlement request from another participant, it may file a request for arbitration, in which the payment system operator will act as arbitrator.

During the arbitration procedure, the Payment System Operator decides which party is responsible for the disputed transaction. The decision is final. During the arbitration procedure, the Commission for Arbitration and Dispute Resolution checks all documents and data provided by both participants in the payment system.

The losing sideYou must pay the arbitration settlement fee to the Payment System Operator (from $250-500 for each transaction). Therefore, it is worth acting only if you are sure that all the facts are on your side, and are ready to pay the Arbiter's commission in case of defeat. Once again, weigh everything carefully and proceed.