Online payment processors have dramatically affected transactions but what happens when you need a chargeback?
Imagine you found an online store that sold your favorite pair of name-brand shoes for a fraction of the retail price. You placed an order, made a payment and the countdown for its arrival.
The day finally comes. The shoes are delivered to your door and the excitement has reached its pinnacle. You opened the package to find a counterfeit pair of shoes not worth the box they’re sitting comfortably in. Sorry buddy, you’ve just been scammed!
Unfortunately, this is only one of a handful of circumstances in which a debit or credit card transaction can create problems. Often packages just never show up. Other times consumers are charged twice for the same goods or services. Either way, this is your money and you deserve to get it back as soon as possible. You quickly begin to research the online payment processor and get to work on arranging a chargeback.
What is a Chargeback?
A chargeback is essentially a refund credited to a cardholder’s account after a dispute has been raised and the transaction is retroactively cancelled. Chargebacks can be obtained for both debit card and credit card transactions and are governed by the card company’s terms of use.
There are two types of chargebacks. One is for an authorized transaction and one for an unauthorized transaction, also known as fraud. It is most important to understand the difference between the two.
There are a number of reasons why a cardholder can dispute a transaction. For example, a card could be charged by a merchant for items that were never received. A merchant might inadvertently charge a cardholder for a purchase twice. Sometimes, technical issues arise that generate incorrect charges. And then there are cases in which subscriptions and other services are not properly cancelled and the charges continue to appear on your monthly bill.
Attempts to dispute a transaction, especially one that was authorized, can be a difficult and time consuming task. This is due to the necessary evidence you will need to present and the reluctance of banks to consider such cases.
Online Payment Processors and Your Chargeback
Online payment processors have transformed how we process transactions. Their presence in the payment ecosystem has grown exponentially since the outbreak of the COVID-19 pandemic. Amazon Payments, Transferwise, Paypal, and Stripe are just a few of the players that have joined the online payments platform. These companies help millions of consumers transfer funds effortlessly and at minimum cost.
So what are the implications when you transfer money using one of these online payment processors? Unfortunately that’s not very clear. The answers lie hidden in the fine print on each company’s terms and conditions page. The majority of them, however, like traditional banks, do not have the resources, time and expertise to deal with such cases. It doesn’t increase their bottom line and it’s easier for them to just reject your request.
There is an alternative solution that we can recommend. Leaders in fund recovery and alternative dispute resolution, MyChargeBack has a proven track record of delivering results to the thousands of satisfied clients they have assisted over the last few years. If you believe you are the victim of a scam, MyChargeBack will analyze your case and assist you throughout the entire recovery process.