Types of Chargebacks

Credit Card Chargebacks

One of the most common types of fund recovery services is credit card chargebacks. If you notice an unauthorised charge on your credit card bill, you can ask the bank that issues the credit card for a chargeback. This simply means a reversal of charges from the recipient’s card back to yours. 

When filing a chargeback request, it’s important to understand how credit card companies define “fraud.” We tend to use fraud broadly to denote any dishonest financial service. However, credit card companies and payment platforms will define a transaction as fraudulent only if it wasn’t authorised. 

This means that if your account was hacked or someone got a hold of your credit card and used it, you can file a fraud complaint because you didn’t authorise the charge. However, if you willingly made a transaction with another party you suspect is a scam, the credit cards won’t define this as fraud. 

Instead, you’ll have to go through the chargeback dispute resolution process. This means making your case and the merchant will make theirs and the issuing bank, like a judge, will resolve the dispute by either granting the chargeback or siding with the merchant and validating the original transaction.