What Is a Chargeback and When Can It Help You Get Your Money Back?

A chargeback is a legitimate mechanism for recovering money when services have not been provided or fraud has occurred and the seller ignores your complaints. In this article, I’ll explain in detail how payment disputes work under Visa and Mastercard rules, the difference between a standard refund and a dispute handled through the banking system, and provide a step-by-step guide to recovering your money, including the evidence you should prepare.

I’ll start with a definition, because there is a lot of confusion surrounding this term.

A chargeback is a procedure for disputing a card transaction in which the issuing bank submits a dispute through the payment network to the seller’s acquiring bank. You initiate the procedure through your bank, which then handles the dispute according to the rules of the relevant payment network — Visa or Mastercard.

It is worth understanding what a chargeback is before a problem arises. Once your money has been debited, there is usually little time left to study the theory.

Here is how the process works:

1. You contact the bank that issued your card and describe the disputed transaction.
2. The bank checks whether the situation qualifies for a dispute under the payment network’s rules.
3. If it does, the bank submits a request through Visa or Mastercard to the acquiring bank that processes payments for the merchant.
4. The seller’s bank forwards the request to the merchant, who either accepts the dispute or provides evidence in their defence.
5. The issuing and acquiring banks review the evidence according to the payment network’s rules, and the dispute proceeds through the relevant stages of the chargeback process.

It is important to understand that a chargeback is not simply a “get your money back” button. It is a formal dispute procedure with clearly defined rules and deadlines.

The bank accepts your complaint and processes it under the payment network’s rules. If the seller disagrees with the dispute, they may submit supporting evidence, and the case may proceed to further stages of review.

These are two different procedures, and I always recommend starting with the simpler option.

A standard refund occurs when the seller reverses a transaction and returns your money voluntarily.

You contact the store’s customer support team, reach an agreement, and the merchant initiates the refund through their payment terminal or payment service.

The refund is usually credited to the same card, although the processing time depends on the seller, payment service and bank.

A chargeback is a transaction dispute procedure conducted through the bank and payment network. It may result in your money being returned if the dispute meets the relevant requirements and sufficient evidence is provided.

The key differences are:

• Who initiates it: A refund is initiated by the seller after agreeing to return the money. A chargeback is initiated by you through your bank.
• Processing time: A refund usually takes days, while a chargeback may take weeks or months.
• Outcome: A refund depends on the seller agreeing to return the money. A chargeback is reviewed under the payment network’s rules and does not guarantee a successful outcome.
• Consequences for the merchant: Chargebacks involve additional costs and administrative work, so it is often more beneficial for the seller to resolve the issue directly with the customer.

Before contacting your bank, it is worth trying to resolve the issue directly with the seller and keeping evidence of your communication.

Visa and Mastercard rules provide a fairly broad range of grounds for disputes. Here are the most common scenarios.

You paid for an order by card, the delivery deadline has passed, the parcel has not arrived, and the seller is not responding.

In this situation, there may be grounds for disputing the transaction. However, you should first wait until the agreed delivery period has expired and attempt to contact the seller.

You order a laptop with certain specifications but receive a completely different model.

You book a hotel advertised as having a swimming pool, only to discover that there is no pool when you arrive.

The word “significantly” is important here. A slight difference in colour is unlikely to qualify, but receiving an entirely different model of electronic equipment certainly may.

You return an item, the merchant confirms in writing that they will refund your money, but a month passes and nothing happens.

In this situation, a chargeback may provide grounds for disputing the transaction, provided you have retained the correspondence and documents confirming that the goods were returned.

Money has been debited from your card for a purchase you did not make. Possible causes include skimming, leaked card details or unauthorised access by third parties.

You need to act immediately.

Notify your bank, block your card through the banking app or contact centre, and ask how to submit a report about the unauthorised transaction.

If necessary, the bank can help you arrange a replacement card.

Do not wait for additional unauthorised charges. Reporting the incident promptly allows the bank to begin investigating and take the necessary measures.

A payment terminal processes the same transaction twice.

This is a technical error that can often be resolved relatively quickly. It frequently occurs because of a payment terminal malfunction or a delayed internet connection during payment.

To support your claim, you will need a bank statement showing two identical charges for the same purchase.

You cancel a subscription according to the required procedure, but payments continue to be taken.

The cancellation date, subscription terms, date of the next charge and whether the transaction qualifies under the dispute rules all matter.

The key to a successful claim is clear evidence of cancellation, such as a screenshot or email confirmation.

If the service provider ignores its own rules and continues charging you, the bank may accept your complaint for review under the payment network’s rules.

One important warning: just because your situation resembles one of these scenarios does not mean you will automatically receive a refund.

Every case is reviewed individually, and the evidence is what matters.

There are also situations where disputing a transaction can be more difficult. These include:

• The dispute deadline has passed. Payment networks set different deadlines for different types of disputes. That is why you should contact your bank as soon as possible after a problem arises.
• The transaction was authenticated using 3-D Secure or a one-time code. Such authentication does not automatically mean that a chargeback will be rejected, but it may be taken into account during the review. If you did not make the transaction, you should still notify your bank as quickly as possible. The outcome will depend on the circumstances, authentication method and payment network rules.
• The goods were received and matched the description, but you simply did not like them. Payment networks do not assess subjective expectations.
• The seller provided evidence in their defence. This might include signed delivery confirmation, photographs of the goods or correspondence confirming receipt.
• Cash transactions, card-to-card transfers and cryptocurrency transactions. Card-to-card transfers and other transactions that are not standard purchases of goods or services may fall outside the usual chargeback procedure. Whether a dispute is possible depends on the transaction type and payment network rules.

So, how can you recover money paid by card?

1. Try to reach an agreement with the seller. Keep a written record of your communication: emails, customer support chats or messages sent through the website. Allow the seller time to respond according to their refund policy or the nature of the situation.
2. Gather your documents. These may include a receipt, bank statement confirming the payment, screenshots of the product page, correspondence with the merchant, order number and parcel tracking number.
3. Contact your bank. Depending on the bank, you can submit your complaint through the mobile app, contact centre or a branch. Describe the situation clearly and without emotion: what you purchased, when, how much you paid, what went wrong and what steps you have already taken.
4. Complete the dispute form. The bank will provide a form for disputing the transaction. Carefully check the transaction details, including the date, amount and merchant’s name.
5. Wait and stay in contact. The bank may request additional documents. Respond promptly, as the procedure has strict deadlines.

If the transaction was unauthorised, the first step is different: block your card through the banking app or hotline before submitting your complaint. The sooner you act, the better.

Evidence determines the outcome of a dispute. At a minimum, you should prepare:

• A card account statement showing the disputed transaction.
• A receipt, payment confirmation or electronic proof of purchase.
• The order number and details.
• All correspondence with the seller.
• A screenshot of the product or service description at the time of purchase — this is particularly important because the seller may change the page.
• Documents confirming that the goods were sent back, if you returned them.
• Photographs of the goods if they were damaged or did not match the description.
• For services, the contract, voucher or booking confirmation.

A practical tip: take screenshots when making a purchase, not only after a problem arises.

Product pages, delivery terms and refund policies have a habit of changing precisely when you need them most.

A chargeback usually takes longer than a standard refund.

First, the bank reviews your complaint and supporting documents. If there are grounds for a dispute, it initiates the procedure under the payment network’s rules.

The merchant and participating banks may then exchange evidence and responses within the established deadlines.

There is no single timeframe that applies to every case. The duration depends on the reason for the dispute, the completeness of the documentation and how the review progresses.

The best approach is to contact your bank as soon as possible and ask for an estimated timeframe based on your particular circumstances.

A rejection does not always mean there is nothing more you can do.

First, find out why your request was rejected and ask the bank to explain the grounds for its decision.

You then have several options:

1. Provide additional documents. If the bank identifies missing evidence, submit it if the dispute procedure still allows you to do so.
2. Contact the National Bank of Ukraine. If you believe the bank has violated your rights or handled your complaint improperly, you can submit a complaint to the NBU after first contacting the financial institution.
3. Contact the State Service of Ukraine on Food Safety and Consumer Protection. This may be appropriate if the dispute concerns a violation of consumer rights by the seller and falls within the authority of the service.
4. Consider legal action. Depending on the circumstances and available evidence, going to court may be one way to protect your rights.
5. Report suspected fraud to the police. If there are indications of a criminal offence, you can report it to the police while the bank is still reviewing your case.

Finally, here are some rules that work better than any chargeback because they help prevent problems before they occur.

Remember:

• When shopping online, use a separate card with a small balance or a virtual card that can easily be reissued.
• Enable 3-D Secure and push notifications for all transactions so you can spot unauthorised charges immediately.
• Never share your CVV code or SMS verification codes. No bank employee will ever ask for them.
• Check the seller before paying: reviews, domain registration date and whether the website provides company details.
• Avoid making card-to-card transfers to strangers, as these transactions are extremely difficult to dispute.
• Keep receipts and correspondence at least until the warranty period expires.
• Check your bank statements regularly, not just once every six months.

A chargeback may help you recover your money if the situation meets the payment network’s rules and sufficient evidence is provided. That is why it is important to contact your bank promptly and keep proof of purchase and correspondence with the seller.

Translation into English was created with the help of artificial intelligence.