A Chargeback occurs when the merchant’s sale is disputed by the cardholder for any reason including:
- the merchant won't issue a credit return (refund) for a product dispute
- the customer claims they never received the product
- the customer claims their card was used fraudulently
…then the customer can call their Card Issuing Bank directly and disputes charge.
The Card Issuing Bank notifies our Acquiring Bank that a cardholder is disputing the transaction and they notify us. We in turn mail the merchant a Chargeback notification and require the merchant to respond ASAP to their customer's dispute.
It is up to the Card Issuing Bank, based on their investigation, if the cardholder will receive their money back. Should this occur, funds will be debited from the merchant's checking account and given back to the cardholder.
A chargeback fee is assessed to the Merchant, regardless of the outcome.
NOTE: This is why is it so IMPORTANT to have excellent “return, warranty, cancellation policies” clearly accessible on your Web site.
Please visit Visa’s web site for more information on Chargebacks and fraud prevention: