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The Little Known Secret Called ‘Chargeback’

Mar 02, 2015

Chargeback is a process your debit or credit card provider can use to reverse a transaction on your card if something has gone wrong with the item you paid for. This applies to all debit cards in the UK. Not many people are aware of the right to use it, but its growing interest means we should all pay attention and know our rights.

The scheme in which Chargeback operates is not part of the law, but is instead part of Scheme Rules. This is a code that all banks sign up to.  

When can I use it?

Chargeback can be used when goods have not arrived, they are damaged when they do arrive, they are not as they describe, or where a merchant or business has ceased trading. 

How do I use it?

You can ask your card provider to get the money back you paid. This usually involves filling out paperwork outlining your problem. For example, if you paid for a holiday by debit card, and that provider went bust, then you can claim the money that you lost from your debit card provider. You would not be able to claim the cost of replacing your holiday though.

Is it guaranteed?

There is no guarantee that your bank can claim the money back. However, where possible the card provider should try and help you and refund you where they can.

When should I make a claim?

It is important to note that in order to use chargeback you should make an application to your bank within 120 days

Are there any alternatives?

If you are having difficulty with your chargeback request, you may also be able to rely on section 75 of the Credit Consumer Act. This section applies to credit cards and providing you have paid for goods over £100, your credit card provider is obliged to return that money to you if the goods are damaged or faulty.

If you are having difficulties with an online provider, or have a dispute about goods that you have ordered, give our Team a call to discuss in more detail. 


Nicola Lucas

About the author

Nicola Lucas

Nicola is a member of our Business Law Team handling all the commercial requirements of her clients such as shareholder agreements and negotiating on commercial ...

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