Chargeback

Cashless payments are, above all, convenient, fast and secure. They also protect you from dishonest sellers, for example, in case of failure to deliver goods or when the delivered goods do not match the description. You can protect yourself against the consequences of such situations using chargeback.

What is chargeback?

Chargeback is a service/procedure which allows a client, in certain circumstances, to get their money back from a card transaction. This service can be used after a failed attempt to resolve the issue directly with the seller. While the chargeback service is initiated by the bank upon the client’s request, it is provided by the payment organization according to their own regulations.

For Business Cards issued by Citi Handlowy, chargeback is offered by VISA.

When can you apply for chargeback:

• the delivered goods (or service) do not match the description,
• the client was charged for a service or goods that they did not receive,
• the charge amount is higher than the amount due,
• the client was charged twice (or more times) for the same goods or service,
• the payment was settled in a different currency than the one accepted by the client,
• the card has been debited with a regular payment despite a subscription having been cancelled,
• the client has not been given a refund for a cancelled transaction,
• the client does not recognize a transaction and believes they have fallen victim to a fraud,
• an ATM did not dispense cash, but the account was debited.

How does chargeback work?

The service is available for up to 120 days after the transaction date or the delivery date of the purchased goods or service.

1. The client applies for chargeback with the bank, along with documents confirming a wrongful charge.
2. After accepting the request, the bank refers to the institution settling the seller via VISA, requesting that the transaction amount be refunded.
3. The settling institution informs the seller of the client’s request.
4. After the seller has considered the request, the settling institution shares the reply with the client’s bank.
5. The bank informs the client of the decision concerning the request.

The request may be accepted or declined. If the seller proves that the transaction was executed correctly and the goods match the description, the request will be declined. However, if the request is accepted, the seller will incur all the costs of the procedure and will give a refund to the client.

Rules of a chargeback request

In order to initiate the chargeback procedure, the client may be required to take additional actions or to present documents confirming the legitimacy of challenging the charge. For a successful processing of a request, it is also important to document the client’s previous attempt to resolve the issue with the service provider.

VISA also establishes additional rules, such as limits on transactions subject to a chargeback request. All the rules governing the actions of the payment organization are described in its materials, to be found on VISA’s website, in the section “Visa Rules + Policy”.