Chargeback
If you’ve ever noticed an unauthorized charge on a credit card and requested a cancellation of the transaction, you are already familiar with chargebacks. This is among the most popular forms of fund recovery, and is usually the most straightforward. Not all payment methods offer chargebacks according to the original chargeback meaning, but for any payment method, fund recovery is possible with the help of experts.
What Is a Chargeback?
A chargeback is a reversal of charges. It’s as if the transaction never happened. The money goes from the recipient back to the sender.
This sounds simple enough, but the process of getting a chargeback request approved can be complex and requires a number of steps. The likelihood of getting a chargeback depends on the payment method and whether the claim is classed as a fraud or dispute. Also evidence is a crucial factor in persuading banks and payment platforms to approve a chargeback request.
Chargeback Vs. Refund
The term “chargeback” is used loosely. Part of this is because there is a proliferation of payment methods, and there is a habit of talking about a chargeback meaning a refund rather than a direct reversal of charges.
For instance, we may use the term “bitcoin chargeback” even though what really happens in this case is a refund. Every blockchain transaction is permanent and can’t be erased. According to real chargeback meaning, chargebacks on the blockchain aren’t possible.
However, in crypto scams cases, judges may require the recipient grant the sender a refund. This is fund recovery, but not strictly speaking a chargeback. However, the term “bitcoin chargeback” is used frequently now simply to mean fund recovery.
What Is the Difference Between a Chargeback for Fraud and Chargeback Fraud?
Fraud is one of the reasons we may seek a chargeback. If we’ve noticed an unauthorized charge on our credit cards, the first step is to approach the issuing bank and ask for a reversal of charges.
We may also ask for a chargeback if we paid another party that turns out to be fraudulent. Although a credit card company may consider authorized charges to be in the category of a dispute resolution rather than fraud, we consider these dishonest parties to be fraud in the general sense.
Chargeback fraud, however, is in an entirely different category than chargeback claims. Instead of the recipient tricking the sender into giving them money. The customer will make a phony chargeback claim so they can keep the item and get their money back. This is considered digital shoplifting.
Even if we wouldn’t think of committing chargeback fraud, this behavior has consequences for all of us. Because of the increasing incidence of this type of fraud, issuing banks are now more cautious about approving chargebacks, because merchants are rightly complaining about unscrupulous customers.
Types of Chargebacks
There are many types of chargebacks. The following are the most common varieties:
Credit Card chargeback and Debit Card Chargeback
The rules of credit card and debit card chargeback are usually the same for all credit card companies. However, it’s important to look up online the specific rules, terms and conditions issued by the credit card company you are dealing with.
The basic procedure for credit card chargebacks is pretty much the same. The customer either notices an unauthorized charge or feels that the party they sent money to is fraudulent. They will file a claim and request a chargeback for the transaction.
This claim goes to the credit card company and then to the bank that issued the credit card. The issuing bank will then ask for the merchant to make a counterclaim. In these cases the issuing bank acts as a kind of a judge who looks at evidence from both sides and makes a decision about whether the chargeback will be granted or not.
It’s important to keep in mind when making a chargeback claim, to ensure it’s in the right category. Although we may feel we are dealing with a fraudulent broker or merchant, according to the chargeback meaning, a fraud only applies to unauthorized charges. If you suspect a broker or merchant is a scam, the claim is in the form of a dispute rather than a fraud.
Return Item Chargeback
A return-item chargeback, as the name suggests, is a claim to get money back after the item has been returned. If you’ve sent the purchase back to the merchant, they can’t claim they suspect chargeback fraud.
For a successful return-item chargeback, it’s essential to provide proof that the item was sent back. An unscrupulous merchant may claim they never received it, but evidence can be secured from the post office or the delivery service.
Paypal Chargeback
The Paypal chargeback process is similar to that of a credit card. People can file a claim with chargeback. If they suspect their account has been hacked and has noticed unauthorized charges, they will file a fraud claim. In the case of a shady merchant or broker, the claimant should provide evidence that they believe the merchant is fraudulent and that they didn’t receive the product or service they paid for. Paypal will decide whether the chargeback will be granted or not.
Venmo and Zelle Chargebacks
Venmo and Zelle are a convenient way of sending money and buying items, but unfortunately, it often attracts fraud. Unlike bank wire transfers, there is no delay before the money reaches the recipient, unless the account is inactive. Also, the chargeback process doesn’t occur through these platforms directly. If you’ve made a Zelle or Venmo payment through a credit card, it’s necessary to contact the issuing bank of the credit card to get a chargeback.
Bitcoin Chargeback
As stated above, a bitcoin chargeback, according to the original chargeback meaning, doesn’t really exist, since transactions can’t be reversed on the blockchain. However, bitcoin chargebacks in the sense of crypto recovery is not only possible, but it can be quite effective with crypto experts on your side.
If you’ve lost money through crypto transactions, Broker Dispute uses technology and bitcoin forensics to help you track down your funds.
Have You Lost Money to a Broker Scam? Talk to Us?
Broker Dispute professionals are the people to contact if you suspect you’re dealing with a scam broker or another type of fraud. We have the expertise and the technical solution to unmask information about crypto scams. We will launch an investigation and create a report that will boost your claim and assist you with fund recovery.