Credit Card Chargeback - When & Why Credit Cards Will Pay You Back

By Sandy Naidu | May 8, 2009

When Ansett Airlines collapsed a lot of people who booked their flight tickes using credit cards applied for chargebacks and they all got their money back. When I read this I thought it is definitely thought it was worth finding out more about chargebacks.

Here is when you can apply for credit card chargebacks:

1. If the merchant does not supply the goods

2. Unauthorised transactions - any transaction for which cardholders approval was not there or any other credit card fraud

3. Duplicate transactions - paying for goods twice

4. Cancellation of recurring transactions - if the merchant continues charging even if the card holder canceled the recurring transaction.

When any of the above things happen you need to inform your card issuer within 75 days of the problem transaction. The issuer will investigate and if all okay from your side, it will pay you the money. The issuer will then liaise with the merchant’s back and claim the money from them. The merchant’s bank will usually honour such pay backs (unless there are other problems).