How Do You Reverse A Credit Card Transaction?

Reverse a credit card transaction

You can reverse a credit card transaction for several reasons. Once you have exhausted efforts to do so with the merchant the issuer of your credit card can help.

The short answer is yes, you can reverse a credit card transaction. That being said there are a few quid pro quo that you should be aware of that might determine if and how much money you will be refunded. Your credit card company is there to help you resolve issues but only after you have attempted to find a solution with the merchant first. If they are unable or unwilling to assist you then your next step is to call your financial institution or card issuer.

Frequently Asked Questions about reversing a credit card transaction:

1. I ordered a product online, my card was charged but the product never arrived. Now when I got to the website it has been taken down. Can I get my money back? Yes. Most credit card companies have something called a “chargeback” which they can use to reverse the charges on your account. You should also be refunded any interest you were charged for the transaction. Typically a bank will allow two months for a chargeback from the date of the transaction.
2. What do I have to do to get a chargeback? After you have attempted resolution with the merchant and have not gotten the assistance you need contact your issuing bank. You will need to give them proof that you purchased the goods, possibly proof of a returned item, the date of purchase, and a description of the product or service you requested.
3. Is there a fee for a chargeback? If your application is unsuccessful you may be charged a fee of around $6 on average.
4. Could I get a chargeback if I ordered a specific brand of product and received another one instead? Yes, there are various reasons for a chargeback including a “not as described” rule. Getting the incorrect brand falls under that category.
5. I paid a deposit on furniture that was never delivered and now the business has gone bankrupt. Am I eligible for a chargeback? Usually this will qualify for a chargeback depending on the bank under a “non-receipt of merchandise” rule. It also means that if there is no money available to refund your account the credit card company should cover the money and they will become an unsecured creditor of the merchant.
6. I bought some electronic equipment a few days ago and now have found it cheaper elsewhere, will this qualify for a chargeback? No you can not reverse a credit card transaction just because you found a better deal.
7. What can I do if the issuing bank refuses a chargeback request? The first step is to file a complaint with the bank. If you are still not successful you might be able to get the Banking Ombudsman to order them to give you a refund.

Your issuing bank will get involved to help dispute charges when you need to reverse a credit card transaction It is best if you can solve any issues with the merchant with whom you made your original transaction. Most of them will work hard to ensure that you are satisfied with the outcome.

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