Am I eligible for a Chargeback?

By | October 15, 2020

Overview

Chargebacks are a way to try and safeguard cardholders, against loss via fraud. It essentially is an attempt to get a person their funds back from a merchant, if they have wronged the first party. Now while this might sound like a refund, it can be much more complicated than that. This complexity rises, because it is tried to ensure that this is a fair process; Where both parties get to make their case. This creates dialogue, and the need for evidence, before a ruling can be passed out. Hence this process can often go for months or even more, until a verdict is passed and neither party is dissatisfied with it. Both parties have the right to report their dissatisfaction with a verdict and can try to make their case again.

Rules of Chargeback

When it comes to finding out who is eligible and who isn’t for a chargeback, there are a bunch of factors that come into the picture. However the first thing you’d look at in a situation like this, is the reason code. You probably might already know if the concerned reason code would be applicable to the current situation or not. And it is rather easy to find out the reason code and then compare it with your situation. If you think you have a case, then you go for a chargeback. Now, once you’ve checked this, there are various other factors that we’ll look into. For instance just think of a situation where someone was scammed 6 months ago, but just realized they were scammed. Do you think they can apply for a chargeback?

Different Factors affecting Eligibility

  • Deadlines
    Of course there are deadlines before which you need to file your case, otherwise it is just not admissible. While these can vary from case to case, reason code to reason code; Some basic guidelines are – 120 days to file for consumer and 45 days or less for merchant to file representation.
  • Network Specific Guidelines
    As mentioned before there are certain guidelines that change based on the reason code. Similarly certain guidelines are specific for different card networks. For instance has some guidelines which are unique and thus are quite different from MasterCard. 
  • Some basic Hygiene Factors
    Apart from the network guidelines, there are some basic conditions in which you can’t apply for a chargeback. These rules might or might not be obvious to everyone, so we’ll mention them –
    a) If the loss incurred by you is in any way covered under an insurance claim.
    b) If the payment was made in cash or via cheque.
    c) You’ve already been compensated in some other way.

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