Chargeback is a procedure for challenging a transaction that allows a customer to refund money for paid goods or services. This process is very useful if the customer is dissatisfied with the quality of the product, did not receive the order, or found that money was debited from his card without permission. For Mastercard, chargeback has its own characteristics, which are important to consider.
What is a chargeback and how does it work?
Chargeback is not just a refund. This is an official challenge to the payment through the bank that issued the card. The client, noticing an error or a suspicious transaction, contacts the bank, and it begins proceedings.
The procedure works as follows:
- The customer discovers a problem (for example, an error in the amount of the charge, a double charge, or unproven services).
- Contact the bank, describe the situation in detail, attach evidence.
- The Bank conducts an investigation and, if it considers the claim justified, sends a request to the seller’s bank.
- If the seller cannot prove his case, the money is returned to the customer.
Chargeback is not a customer’s right, but a service provided by the bank. The terms and conditions depend on the payment system. In the case of Mastercard, there are clear rules that help to effectively resolve controversial issues.
Features of chargebacks on Mastercard cards
Mastercard cards are characterized by the flexibility of the chargeback rules. On the one hand, this simplifies the process for clients, on the other hand, it imposes strict requirements on evidence. It is important to understand that the procedure does not guarantee a refund in 100% of cases. Success depends on the situation and the evidence gathered.
Main Features:
- The deadline for submitting the application. Usually, the client is given 120 days from the date of the transaction, but in some cases (for example, if we are talking about non-fulfillment of the service), the period may be extended.
- Reasons for a chargeback. Mastercard accepts challenges for a wide range of reasons, from debiting the wrong amount to fraudulent transactions. At the same time, each reason has its own code, which the bank specifies in the request.
- The need for evidence. To increase the chances of success, the client must provide as much information as possible: receipts, correspondence with the seller, photos confirming the problem.
- The Mastercard chargeback process begins with the customer contacting the bank. Then the bank checks the situation and, if necessary, contacts the payment system. This is a complicated process, so it is important to fill out the application correctly right away.
Typical reasons for challenging transactions
The chargeback process becomes more understandable if you understand in which cases it is used. The main reasons are:
- Fraud. If money was debited from the card without your consent.
- The seller’s mistake. For example, an incorrect amount or a double debit.
- Low-quality product or service. If the product does not match the description or the service was provided poorly.
- Non-receipt of the goods. You have paid for the order, but you have not received it.
- Cancellation of the reservation. For example, if the hotel has withdrawn money for a cancelled room.
Knowing the typical reasons, you can understand how to prepare for the application. The better you explain your position, the more likely you are to succeed.
How to avoid problems with chargeback?
The best way to solve a chargeback problem is to prevent it before it even occurs. Recommendations:
- Check receipts and receipts carefully. Before paying, make sure that the amount is correct.
- Check the seller’s reviews. This is especially important when shopping online.
- Keep payment confirmations. Copies of receipts and correspondence with the seller can play a key role in the dispute.
- Use a Mastercard for secure purchases. This payment system has developed customer protection mechanisms.
Mastercard chargeback is a useful tool that helps customers protect their rights in case of disputes. However, the process requires care and preparation: it is important to know the deadlines, collect evidence and argue your position. The Mastercard payment system provides customers with effective protection mechanisms, but success largely depends on your actions.