Credit article: Chargeback

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Have you discovered some fraudulent transactions on your monthly credit card statement? Then you can use a chargeback to get a reversal on a credit card transaction. There may be cases when you find your credit card has been charged without your consent, so this can be extremely helpful

A chargback can also be beneficial if you discover that you are not satisfied with the quality of a product or service you have purchased. In those cases, you can make use of the reversal option, which is available with all the credit card companies. Theses types of transactions may include situations wherein:

• Card holder does not authorize the transaction.
• Transaction was processed more than once.
• Customer never received merchandise or services.
• Error in transaction amount.
• Incorrect amount processed in transaction.
• You receive a product differ from what was described or promised.
• Card Consumer is not satisfied with quality of product or service.

In case of a chargeback, the bank will investigate your complaint. They will then take back the amount of the original transaction from the merchant's account, unless the merchant can verify the transaction was genuine. Sometimes the complaint is not genuine and a consumer's claim gets denied. In these cases the merchant will be sometimes get charged processing fees in the bargain.


The majority of the chargeback cases do happen due to technical problems between the merchant and the issuing bank. For example, a consumer was charged twice for same transaction or other such mistakes like the authorization process of a credit card, wherein the transaction is declined by the issuing bank and the account is still charged.

A merchant is billed for the chargeback along with the fees and the settlements associated with the credit card transaction. A chargeback may be appealed by the merchant and if chargeback is found to be untrue then the merchant will get a reversal. Dishonest consumers normally abuse the chargeback system by making a purchase over the Internet with a credit card. Then, upon receive the product or service; they will issue a chargeback, which can lead to difficulty in recovering payment for the merchants.

In the end, a chargeback can be considered as safeguard against your credit card transaction. As a credit card consumer, one must have knowledge about all its technical details like interest rate, annual fees, and especially the things like chargeback.

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