What Are Chargebacks?

If you have ever gotten a refund from a credit card transaction, you are already familiar with what a chargeback is. A chargeback is a return of charges onto a credit card after a transaction has been made. A chargeback is done to correct an erroneous charge to resolve a dispute or to deal with merchant fraud or crypto fraud.

Broker Dispute professionals can guide you through the chargeback process. Our experts have extensive experience with the financial industry and understand the chargeback process well. We assist thousands of clients every year and have a proven track record of success for resolving disputes and cracking down on all types of fraud.

If you have noticed unauthorized charges on your credit card, it is important to take care of the issue right away. The more time passes, the lower the odds are of resolving the issue in a way that is favorable to you. Credit card banks, or issuing banks, often try to be helpful, but sometimes they just want to avoid complex disputes and will tell you to seek legal services.

It should be kept in mind that issuing banks are working on behalf of the credit card companies that may want to provide good service for customers but also have to keep their merchants happy. If you are finding that the issuing bank is slow in approving a chargeback, seek assistance from the professionals at Broker Dispute who can help the chargeback process go more smoothly and with a greater chance of a favorable result.

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When Do You Need a Chargeback?

People request chargebacks when they have noticed uanuthorized transactions. They may suspect their credit card information has been stolen, perhaps by a hacker. It should also be noted that even credit cards used offline can be vulnerable to fraud. It is not unheard of that an employee in a physical store may use your credit card information, although this is less common than using data online.
People ask for chargebacks also when their physical credit card is lost or stolen. These chargebacks can be easier to resolve than other types if the customer reported their card lost or stolen prior to the unauthorized charges appearing.
A more complex chargeback process involves merchant dispute. This occurs when the customer is unhappy with a product or service they received and demands a refund. Finally, merchant fraud or crypto fraud is a challenging type of chargeback, which is the type Broker Dispute experts deal with on a regular basis.

Types of Chargebacks?

The following are the most common categories of chargebacks:

  • Unauthorized charges due to error
  • Unauthorized charges due to credit card theft (either the card or just the information)
  • Request for a refund
  • Alleged merchant fraud
  • Credit card fraud

The complexity of these types of chargebacks depends on how willing the merchant is to be involved and to consider making the chargeback. The more intensely the merchant disputes the proposed chargeback, the longer and more complicated the process can be. If the merchant disappears, as in the case of many types of fraud, including crypto fraud, authorities and seasoned professionals like Broker Dispute should be involved to track down the fraudsters.

To be successful in obtaining a chargeback, it is important that the client have an advocate. In the case of a chargeback dispute, the issuing bank acts as the final arbiter of whether or not the money is going to go back to the client. The merchant has its merchant bank to act as its advocate. This means without professionals to represent your position, you may be outnumbered.

The issuing bank wants its credit card company to work on behalf of both customers and merchants. Without an advocate or experts like Broker Dispute, the chargeback process for consumers is like going to court without a lawyer when the other side has a top legal team. This analogy is meant to illustrate the importance of not pursuing the chargeback process alone.

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What Is the Chargeback Process?

It is important to understand the chargeback process prior to initiating it. The chargeback process begins with the clients contacting the issuing bank and requesting the return of the charges onto their card. They will be asked to state the reason and to provide any supporting documentation or communication strengthening their case.
The issuing bank will then present the case to the merchant and the merchant bank. The merchant bank will have a certain amount of time to respond to the client’s demand for the chargeback. The issuing bank will then give a decision either to provide the chargeback or not
The issuing bank usually wants to avoid a lot of back and forth and an extended dispute. They are likely to deny the chargeback if they see it will potentially get complicated and tell the client to seek litigation if they really want to get their money back. Of course, litigation means hiring a lawyer and can be expensive and lengthy. That is why consumers want to save money, time and headaches by doing everything they can to get a favorable result from the issuing bank.

Is it Difficult to Get a Chargeback Done?

The difficulty with chargeback depends on the amount of money and how amenable the merchant is to consider giving a chargeback. This is particularly true since the merchant has the merchant bank making its case, so it has more resources available to fight the chargeback request if they wish.
Of course, both merchants and credit card companies want to please consumers and ensure repeat business. However, if they refunded money every time a refund is requested, they will lose money. In addition, many merchants and credit card companies are concerned about so-called “friendly fraud” which is a digital form of shoplifting when consumers want to keep an item, pretend they are unhappy with it but demand their money back based on a fake complaint.
If you feel the merchant may be unwilling to agree to a chargeback, or if you are dealing with a crypto fraud in which the perpetrators have disappeared, your chances of success are greatly increased working with professionals such as Broker Dispute. Having someone on your side will make it easier to achieve a chargeback and avoid costly litigation.

Do You Need a Chargeback? Talk to Broker Dispute Professionals

Do you want a team of seasoned experts on your side in the chargeback process? Speak to Broker Dispute today. We will consult with you and build your case in a way that will improve your chances of success. We have connections with banks, regulators and authorities and can make help you with the fund recovery process.