How does a chargeback work?

  1. This isn't regarding an eBay situation but I thought this was the most apropriate place to post. I ordered some items from a reputable company. Its been four weeks, still no items. No communication, nothing. I want to do a chargeback. How do I do this and what happens when I do this?

    Thanks girls!
     
  2. I strongly recommend that before you do a chargeback, you try to contact the merchant to find out what happened. That's going to be one of the questions your bank asks, and if the answer is no, they may decline to pursue the chargeback until you do.

    In terms of filing, it depends on the card you used. Your card issuer may have a form that you can use to file online, on the same site where you go to check your balance. You may even be able to do it directly from your online statement -- select the charge and then there will be something like "dispute this charge." It will generally give you a list of reasons and a free text field to write up the issue, as well as other information.

    If you don't see anything like that online, it's still simple. Call the number on the back of your card, explain the situation, and tell them you'd like to open a dispute. It will be handy for you to have your statement if possible, to provide the transaction ID and other information.

    They will generally put that charge in suspense for 30 days so that you don't have to pay that amount. During this time, the merchant's bank is expected to contact the merchant and get their side of the story. If the merchant can prove that they held up their end of the transaction, your credit will be removed and you'll need to pay the original charge. If not, you'll get a notice that your credit is being made permanent.

    Hope that helps! Again, try contacting the merchant before you file to see what's up. I've noticed people seem to think of a chargeback as a first resort rather than a backup after other methods haven't worked out, which it's not really intended to be. It's just like if you bought something from a brick and mortar store and didn't like it -- you go return it or complain to the store, you don't just go straight to your card issuer.
     
  3. Thanks Kimberf, you've answered all of my questions perfectly!