Mastercard Chargeback Feature Explained

| August 14, 2012

Mastercard Chargeback

There is one very important aspect of owning a Mastercard and that is called “chargeback”. A chargeback happens when you get your money back if a certain product or good is not delivered to you. This is a fallback you can use if Section 75 refund protection won’t apply to you.

How is it different from Section 75?

To give you a background, there was a law created during the 70s called Section 75. Simply speaking, it binds the card company to refund you just in case something goes wrong with the product you ordered or the transaction you made. It serves as a legal protection for the buying consumers so that they won’t be bound to pay a debt for something they didn’t receive. It also safeguards the buyer against false misrepresentation and faulty products but you can only ask for this protection if the value of what you bought is between £100 to £30000. With Mastercard’s chargeback feature, there is no upper limit on the amount you can claim for a refund though the minimum amount for filing a dispute is £10. This is part of Mastercard’s internal rule so it may be important to note that legally speaking, banks don’t really have a responsibility to refund you unlike filing for a dispute under Section 75. Chargebacks should be filed within 120 days of issue and is only applicable to products which didn’t arrive or are faulty.

What are the possible reasons for claiming a chargeback?

A major reason for filing a chargeback claim is when the item delivered to you is of inferior quality. It may be that the goods were not what was purported to be or were defective by the time you received them. Another reason is fraud. If you did not authorize the purchase, then it is a clear ground for you to file for a dispute. Other common reasons include closure of the seller’s company, goods were not delivered, technical issues including expired authorisation or bank processing errors, and clerical errors such as being charged multiple times and being billed for an incorrect amount.

If you strongly feel that you should claim for a chargeback for other reasons not stated above, feel free to do so but just make sure its before the 120-day mark. Contact your bank for the procedures on how to process a dispute. Now, there’s a large possibility that your bank may not know about this stuff, so you may want to explain the details to them. It may also do good to contact the seller as it may speed up the refund process.

If your refund attempt is unsuccessful, you can make a formal complaint by contacting the Financial Ombudsman. They will be carrying out a formal investigation and you can be assured of an unbiased decision. You just need to visit their website and accomplish a simple claim form. There are no fees associated with filing your dispute. You can also freely check on their financial rights resources.

It is very important to be equipped with the knowledge of using your cards to your full advantage. It’s worth protecting yourself from bogus sellers and knowing how to dispute if such events occur. It could save you a lot of effort, time, and money.

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Category: Credit Cards

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