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What information can I provide to dispute the chargeback directly related to COVID-19?

The merchant must provide evidence of the law or regulation that must explicitly prohibit the merchant from offering the service.

If the service was cancelled due to a government prohibition and therefore not available for the cardholder:

  • A written statement about this dispute
  • Documentation proving the merchant has met their contractual obligations (e.g. order details, invoices, correspondence with the customer, etc.)
  • You must provide the government prohibition that explicitly :
  1. Prohibits the merchant from offering the service due to COVID-19 and/or
  2. Negate the right to a refund by express reference to card network dispute rules, form of payment, or the like.
  • In addition, the merchant must also offer a credit voucher, credit note, or other reasonable alternative consistent with the terms and conditions of purchase between the merchant and cardholder. 
  • An extract or link to the T&C’s specifying the cancellation policy
  • Booking logs showing the T&C’s were accepted prior to the completion of the booking
  • or proof that a full refund was issued or the services were used.

Failure to provide all or a reasonable alternative gives the issuing bank dispute rights as the services were not provided, unless the government prohibition explicitly negated the right to a refund or other alternative.

The cases of government prohibition superseding credit card rules are very limited and in most scenarios, issuing banks will continue to have dispute rights.

 

Updated on July 7, 2020

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