Chargebacks for purchases by credit card can be secured through the issuing bank under either one of two possible conditions.
The first is fraud. This is simple to prove and easy to understand. If you lose your credit card and someone picks it up and starts to make purchases, you’re not responsible for them. You report the loss to the issuing bank and a credit will be provided to you.
Another example of fraud is if you use your credit card to purchase a specific item that is never delivered. Say, for example, you buy online a new computer equipped clearly defined technical specifications and after it’s delivered to your front door you open the box and find it contains an inferior model. Or a used one. Or a toaster. In such a case the merchant defrauded you, and your bank can be expected to readily agree that the transaction should be reversed and a chargeback is clearly justified.
The second type of chargeback is service-related. Generally, banks tend to find it more difficult to understand the justification for a chargeback when it’s service-related. After all, unlike a clear-cut case of fraud, you are not disputing that you authorized the purchase. You admit that you did. And you are not disputing that the merchant provided a service. What you are claiming, in contrast, is that the precise service you contracted was not provided by the internet merchant. Now all you have to do is to prove it.
The challenge is that’s much easier said than done. After all, you signed a contract and, in all likelihood, supplied a series of additional documents to the merchant that he can cite to claim that you willingly entered into a business relationship with him and knew exactly what you were doing.
Working with Your Bank
In all likelihood, a number of months went by before you realized that you’ve fallen victim to an internet scam and contacted your bank. You didn’t alert your bank immediately, like you would have done had your credit card been lost or stolen. And if that’s the case, the bank will remind you that there’s a 120-day deadline for filing a credit card dispute and, while you’re a valued customer and they’re very sorry, your time is or will soon be up and there’s nothing they can do, and, of course, thank you very much and have a good day anyway.
Compounding the problem is that the clerk assigned to your bank’s dispute department with whom you speak may never have even heard of a service-related chargeback, let alone dealt with one from start to finish. A common reaction will be to demand within a limited amount of time additional information that may not be readily available. And if you can’t provide that documentation in the time frame they provide, they’ll either leave you with the impression that they may not be able to process your dispute or tell you that outright.
Finally, the same bank clerk who is unfamiliar with a service-related chargeback may also be unfamiliar with online binary options or forex schemes and assume that what you were doing − or more accurately, what you presumed you were doing − was playing the market. Should that be the case, you will more than likely be told that losing money is a risk that is understood from the start. After all, no bank will retroactively cancel a credit card payment that resulted in a loss on the stock market, so the clerk’s immediate instinctive reaction might be to assume you’re not entitled to a chargeback for a loss in this case, either.
Given all this, why should your bank approve and process your request to reverse your transaction?
That’s where AssetFlashBack comes in.
Our strength is our expertise in being able to explain your rights as credit card holders to bankers and, when necessary, resurrecting a dispute beyond the standard deadline that your bank may incorrectly presume has already passed.