Types of Chargebacks

There are two chargeback types: scam chargebacks and service-related. Most people understand fraud. But far fewer know about service-related chargebacks. 


Scam Chargebacks

Scam chargebacks are simple to prove and easy to understand. If you lose your credit card and someone picks it up and starts to make purchases, that’s fraud. You’re not responsible because this is a case of an unauthorized transaction. 

If you report the loss to the issuing bank it will then credit your account, subject to local law. In the United States, for example, federal law limits your liability to a maximum of $50 if you report fraud within two business days. If you do so after two business days but within 60 days you could be charged up to $500. If you wait more than 60 business days you could be held to be responsible for the full amount.

Another example of credit card fraud is if you use your credit card to purchase a specific item that is not delivered. Say, for example, you buy a new computer online. After you accept delivery, you open the box and find it contains an inferior model. Or a used one. Or a toaster. You did not receive the item you authorized. 

You call the merchant but they deny sending you the inferior model. Or the used one. Or the toaster. They just won’t help. In such a case the merchant defrauded you. Your bank will readily acknowledge a credit card dispute and will likely agree to this fraud chargeback.

Service-Related Chargebacks

The second of the two chargeback types is for a service that is not provided as contracted. Generally, it is far more difficult to justify a chargeback when it’s service-related than fraud chargebacks.  

After all, unlike a clear-cut case of credit card fraud, and scam chargebacks, you aren’t disputing that you authorized the purchase. You admit that you did. And you aren’t disputing that the merchant provided a service. What you are claiming is that the precise service you contracted wasn’t provided by the merchant. But can you prove it?

That challenge is much easier said than done. After all, you signed a contract. You also probably supplied the merchant with a series of additional documents to establish your identity. That means he can cite them to prove that you willingly entered into a business relationship with them and knew exactly what you were doing.

Can You Justify a Service-Related Chargeback on Your Own?

In all likelihood, a number of months went by before you realized that you did not receive the service you contracted. You didn’t alert your bank immediately like you would if you lost your credit card or when you file a claim for a scam chargeback. 

To clarify whether you are eligible, the bank may request additional information that you may not readily have at hand. And if you cannot provide that documentation in the time frame required, it will not be able to assist you in your dispute resolution case.

How MyChargeBack Helps

This is where MyChargeBack comes in. We know the rules. We know the difference between chargeback types, including fraud chargebacks and service-related chargebacks. When possible, we also know how to resurrect a credit card dispute beyond the standard deadline. And that’s why you need MyChargeBack on your side.

MyChargeBack has cooperated with over 800 banks internationally on behalf of its clients. Our strategically-crafted arguments are presented in the language bankers understand. Our promise to you is this: We will invest 100% of our effort in your case and fight for you throughout the entire process.

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