How do chargebacks work?

How do chargebacks work?

During registration in various services involving payment for services, the site may require the user to enter bank card information. The most common options are Visa or MasterCard. After confirming the transfer, money is transferred from your account to organizations providing services. At the same time, situations often arise when the goods do not arrive or the write-off amount is higher than the indicated value. In this case, a chargeback can help you. You can do it yourself or with the help of a specialized company. In the first case, you save your money, while in the second case, time.


Cases of fraud during electronic payments are not uncommon. For this reason, large payment systems such as Visa or MasterCard provide a system for protecting customers from fraud. Any illegal transaction can be challenged through the chargeback even if the cancellation occurred through your fault. Please note that in case of receipt of low-quality goods, you should not immediately resort to this procedure. It is much more profitable to use the money back option, which is carried out by the seller. Only in case of refusal should extreme measures be taken.


Filing a chargeback


Payment systems provide a huge list of different situations in which a chargeback can be applied. Each individual case has its own code, which greatly simplifies the application review process. The decision time varies from 45 to 120 days. Recently, MIR card holders can start a similar procedure. One of the advantages of working with the Russian system is the extremely short time for considering the application.


The procedure for receiving the chargeback is as follows:


  • The user sends the company that provided the service an application for a refund, in which he refuses for any reason.
  • Then the cardholder disputes the payment made in a banking organization.
  • The bank that issued the card checks the details of the transaction and makes its decision.
  • Further, the payment system itself considers the possibility of transferring money.
  • After that, the seller receives a request for a refund, which he must implement.
  • The receiving bank sends the funds to Visa, after which they are transferred to the card of the affected party.


An important factor is that if there is evidence of a dishonest attitude of the buyer who wants to illegally receive money through the chargeback, the payment system may impose a fine on the client of up to 1000 rubles.

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