Everything You Need to Know about Chargebacks
How they work, how they’re relevant, how they’re processed, and how we can assist you obtain yours.
A chargeback is, in the simplest possible terms, the retroactive cancellation and refund of a charge made on your credit card. A request for a chargeback can be made to the bank named on the card itself, based on one of two conditions:
- You did not authorize the transaction.
- The transaction was made for goods or services that were not delivered as contracted.
If you didn’t authorize a particular purchase, then you’re in luck according to your bank. If your credit card was stolen or the signature on a receipt was forged, its use constitutes fraud. In such a case, you are automatically exempted from payment under the terms of the agreement you signed with the credit card company. Your request for a chargeback will very likely be approved and your credit card account will be credited the full amount of the transaction.
As a credit card consumer, it is important that you better understand your rights and the power that’s in your hands.
While it’s indeed fortunate that there are many rules and laws that apply to credit card transactions, they can also be very confusing if − like most people − you’re unfamiliar with them. You have your back covered when something goes wrong, but knowing how and when it’s best to utilize that protection is very complicated. It can be a very daunting task just to find the relevant rules, and that’s exactly why Cyber-Retrieve was created. We make the process painless, easy and most importantly, effective. We get your money back − or you get your money back!
If you experience a problem with your purchase, the first step obviously is to contact the merchant or business that sold you the goods or the services in question. They may or may not offer direct and immediate help. If in the end you find out you were scammed, Cyber-Retrieve is there for you.
If you are a debit card user, you enjoy a different set of protections than credit card users do. You can still claim your money back if goods are damaged, faulty or were never received. There is no limit on how much you are allowed to claim and Cyber-Retrieve is here for you too!
Fund Recovery Challenges
If you have been victimized by a financial scam, your first priority is to recover your investment. You can sue, but that can take an eternity, and, no less importantly, an attorney’s retainer and other legal fees can easily wind up exceeding the amount of money you lost. And who do you sue when you have no idea where the supposed brokerage is really located and who really runs it? In some underpopulated island nation or somewhere behind what was once the Iron Curtain? That’s a legal fiction, the proverbial fig leaf. No one from the company really resides or works there. They incorporated there precisely because that country’s governmental infrastructure is too superficial to provide you with any protection.
The process through which you can retroactively cancel your credit card transaction and obtain a chargeback begins when you file your initial request with the bank that issued you the card.
The Issuing Bank and the Acquiring Bank
Visa® and MasterCard® guarantee that you can apply for a chargeback at any time within 120 days from the date of the transaction. Under certain conditions, that period can be extended to up to 540 days, and the law in some jurisdictions provides you with even more. In Britain, for example, you have up to six years to challenge any credit card transaction of up to £30,000.
Once your bank agrees with your request for a chargeback, it will initiate a dispute with the acquiring bank that accepted your payment on behalf of the merchant, which then alerts the payment service provider (PSP), which, in turn, informs the merchant directly. In many cases, the sum you challenge may at this time re-appear in your account as a temporary credit. At this point, however, the merchant has 45 calendar days to prepare and file a response to refute your reasons for demanding a chargeback. If he does not respond within that period of time, your chargeback is automatically approved and your money is now fully and officially yours once again.
If the merchant does challenge your request for a chargeback within those 45 calendar days, your temporary credit will be withdrawn at that time. Visa provides its card holders an additional 30 days to respond to the merchant’s claims, while MasterCard does not. Either way, if and when the merchant exhausts his opportunities to challenge your claim, the file can then be sent for compulsory arbitration. The arbitrators are neutral professionals employed by the credit card companies themselves, not the parties to the dispute. Their ultimate decision is final, although theoretically an appeal can be filed afterwards under exceptional circumstances − for example, in the event the arbitrators’ decision it is clearly based on a misrepresentation of the facts of the case. As a general rule, the issuing or receiving bank that loses the dispute will be responsible to pay for the costs of the arbitration, not the customer.
The entire process, from your initial request to the final resolution, can take up to six months. Our experience is that in most cases it takes three-to-four months.
Cyber-Retrieve’s Value Added Service
What makes Cyber-Retrieve different from other fund recovery firms is the value added service we provide by accompanying you throughout this complicated process. Upon engaging our services, you will be asked to supply us with the following information:
- The names of all merchants, including the URLs of the domains, with whom there is at least one disputed transaction.
- A comprehensive list of all deposits and withdrawals processed with each merchant.
- A comprehensive list of the relevant credit card details for each transaction.
Our financial professionals will then review this material, chart an appropriate strategy and prepare the document you will submit to your bank. Should it become necessary, one of our experienced negotiators will then join you in whatever conference calls are required with your bank’s dispute department to explain to them why they must initiate your dispute. In the event the merchant challenges your request, we will, of course, prepare a point-by-point response and continue to work with you in pursuing your case.