What Is a Credit Card Charge Back?

teacherer on 16/08/2017 - 11:38
Last edited 16/08/2017 - 12:10 by 1 other user

Howdy y'all

I'm about 6 months into my first couple credit cards

Coles Mastercard and Amex platinum edge

• I love my Coles card, 24 month price
  guarantee and 6 months insurance + no
  international fees.
• Amex I've found it's not worth it for me, for the few places I can use it. So I sold my bonus points and used my travel voucher, happy days. Plus the extra warranty etc is useless to me because I plan to cancel it before a year.

Anyway,
I've read about lots of people doing credit card charge backs on unauthorised transactions and such.
What exactly does this mean? With a credit card can you call through to support and dispute any transaction? Or are they referring to things like credit card insurance?

Cheers guys

• 

  IceCreamBandit on 16/08/2017 - 11:43

  +2

  What is a credit card charge back?

  Googling the above gives you this:

  a demand by a credit-card provider for a retailer to make good the loss on a fraudulent or disputed transaction.

  First search result from ANZ gives you this:

  'Chargeback' is the term used for debiting a merchant’s bank account with the amount of a transaction that had previously been credited. There are a number of different reasons why a transaction will be charged back, but they mainly fall into two categories:

  Where the merchant has made an error at the point of sale, for example, an expired card has been used;

  The cardholder or the Card Issuing Company (“the Issuer”) is disputing the transaction. For example the card or cardholder were not present at the point of sale and possible fraud may have taken place.

  AFAIK it's to dispute a transaction (due to fraud, major issue with transaction that the merchant is refusing to assist with etc) and your bank gets involved to get your money back.

• 

  dcep on 16/08/2017 - 11:48

  +1

  chargeback = dispute a transaction by reversing the charge

  you have provide reason and evidence to the CC provider to initiate chargeback

  the merchant will have to respond to CC provider & provide evidence to counter your claim

  the merchant will most likely blacklist you from any future dealings due to chargeback costs them $$$ out of pocket

  ---

  chargebacks can be abused by CC holder

  eg. Bought in-game content from PSN then initiate CC chargeback by claiming as unauthorized transaction by unsolicited minor/child.

  Of course the charges will be reversed successfully without any problem.

  But Sony will ban and close your PSN account, so your whole collection in PSN will be gone as well.

• 

  Baysew on 16/08/2017 - 12:43

  +1

  Here is an example of a chargeback in action.

  Grill'd and Double Charging

• 

  John Kimble on 16/08/2017 - 13:03

  A chargeback is when a cardholder disputes a transaction/transactions on their card. This can be for a number of reasons.

  Behind the scenes it can be a very convoluted, lengthy process. There are dedicated teams in banks just to deal with them.

  Not that many consumers would care, but it can cripple businesses if they are not careful. It is basically taking money away from them (rightly or wrongly) sometimes months after the transaction was processed. Imagine owning a business and having money taken from your till months later that you thought was money in the bank!

  From a merchant perspective:

  https://chargeback.com/what-is-a-chargeback/

  https://chargeback.com/chargeback-process/

• 

  Some Human on 17/08/2017 - 00:14

  +1

  Suspects OP may be considering using this information to commit fraud.

  • 

    teacherer on 17/08/2017 - 09:14

    Nopeeeee.
    Just wondering because I've never actually seen 'charge back' written in any pds I've found.
    Had the though while giving my cc for a free trial
    Chill