A chargeback can be also be described as a credit card card dispute. Visa & Mastercard both have a transaction dispute process. Generally, credit cards are not issued directly from Visa or Mastercard. Instead the credit card is issued by your bank. But if you see the Visa or MS card logo, you are protected by the chargeback or dispute process.

According the Visa, Mastercard rules, if you paid for anything with your credit card, you have the right to raise a chargeback under certain conditions. The most common reason as fraud, where someone used your credit card without your permission. For example, by stealing it directly, hacking into a website that had the info stored, or swiping your info with an illegal card reader on an atm.


Starting the chargeback process

If any of the above happened, you simply call the number on the back of your card (your bank). Then, you explain that there was unauthorized use of your card. Now, the bank will begin the chargeback process on your behalf. First, they will send the money back into your account. Then, they will contact the merchant who charged the card to ask them for proof that you authorized the charge. If the merchant is unable to prove that the transaction was authorized (i.e. with your signature on the receipt), the money will remain in your account. And finally, the case will be closed after 30 days.

What if you authorized it?

However, in cases where you did authorize the charge, there are still potentially chargeback rights. For example, if you authorized a charge but the product or service you got was not as promised. In this case, you can still raise a chargeback but the onus is on you to prove that the product or service was not as advertised. This would be the case if you were scammed by a trading company. Since you authorized the charge, it will be on you to prove that the company did not provide services.

In such a scenario, business owners will frequently dispute the facts and argue that they did provide what they were supposed to. This back and forth can go on 5-6 times over a six month period before a case is closed. If it continues to the end, it will go to Visa Mastercard arbitration and the losing bank will be forced to pay a fine.

You can read more about how the chargeback process here.

If you do want to examine your options for a chargeback in the case where you lost money on trading platform, go ahead and fill out the form here and schedule a free consulation with a recovery specialist.