Regardless of the type of Credit Card you use, whether a free Credit Card or a regular one, we all must have experienced a situation where we were charged incorrectly or received a damaged product. In such situations, getting in touch with the bank for a Credit Card chargeback is the next logical step.
But if you are unaware of the concept, a Credit Card chargeback is essentially a way to dispute a transaction with your bank. In this article, we will learn more about how chargebacks work in India and how you can raise them below.
What are Credit Card chargebacks, and how do they work?
Once you apply for a Credit Card, it is important to understand how to dispute transactions and use chargebacks when needed to protect your money. A chargeback is when you dispute a transaction on your Credit Card that you believe is incorrect, unauthorised, or faulty. You need to file a chargeback request with the bank and provide details of the transaction.
The bank will then review the request and ask the merchant for evidence. If the merchant’s evidence is valid, you can expect a refund. If the merchant’s evidence supports the charge, your request may be denied.
In which situations can you raise chargebacks?
You can raise a chargeback request mainly in the following four situations.
Non-delivery of product or services
If you pay for something using your Credit Card but never receive it, you can dispute the transaction. For example, if you ordered a smartphone online and it never arrived, you can file a chargeback. However, it is important to keep all invoices, order confirmations, and payment proofs. This will help the bank to contact the seller and verify the claim, which is a very important part of the process to get the chargeback.
Billing-related errors involve the same amount getting debited twice or charges getting mistakenly debited. Some common instances are wrong cash withdrawal charges or overbilling.
You can request your bank to look into this matter and refund the extra amount. For instance, the bank might charge a cash withdrawal fee that you didn’t actually incur, or a late fee even though you paid on time.
Unauthorised transactions involve someone using your card without your permission. This can happen in situations where you might have misplaced your card or your card details have been stolen online.
In these situations, you can expect to receive transaction or fraud alerts from the bank informing you about the same. Check your statement and note any unfamiliar transactions. In case you detect any unusual expenditure, get your bank to initiate the chargeback process swiftly.
Dissatisfaction with received products
Sometimes you get damaged goods, defective items, or a product that’s completely different from what you ordered. For example, an online clothing order might arrive with missing pieces. In such cases, you can dispute the transaction with your bank. Take photos or videos of the product, keep all communication with the seller, and share these with your bank. This evidence helps the bank resolve the claim faster and increases the chance of a refund.
Conclusion
You can raise a Credit Card chargeback for unauthorised transactions, undelivered products, billing errors or damaged products. However, to ensure you get the chargeback, always keep transaction proofs, invoices and communication with the merchant handy and report issues to your bank.
By understanding and using the chargeback process, you can make your free Credit Card usage safer and more secure in India.
