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Why does a customer request a chargeback?

According to Credit/Debit Card regulations, the cardholder has the right to dispute the charges for three main reasons:

 

  • The payment was not authorised by the cardholder

 

There are 3 potential explanations for this:

  • The cardholder does not recognize the transaction on their bank statement.
  • The transaction was fraudulent – The cardholder was not aware their credit/debit card was being used for this purchase. 
  • The cardholder’s bank has filed the chargeback.

 

  • The product or service was not received

 

In many cases, there are 3 potential explanations for this:

  • The cardholder claims the product or service they paid for was not received. 
  • The product/service was cancelled and the cardholder was expecting a refund. 
  • The cardholder may have cancelled the product/service themselves and did not follow the cancellation policy.

 

  • The product or service was not as described

 

There are two potential explanations for this:

  • The cardholder may be dissatisfied or feels the product or service was not as described when they were making the booking. 
  • The cardholder may feel they did not receive the full product/service they initially booked. 
Updated on February 17, 2021

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