You have a chargeback! How to protect your online business from scammers.

[CarderPlanet]

Everyone knows about fraud on the Internet, but this does not prevent crooks from mimicking and finding a new victim every time. Fortunately, most online transactions can be returned back to the card.

What is chargeback​

For Visa or MasterCard cards, chargeback is a chargeback, translated from English. Will help you get money back from a fraudulent seller.

Chargeback makes it difficult for crooks on the Internet to calmly fill their pockets at the expense of deceived consumers. Financial refunds can be obtained from:

• some casinos, binary options, Forex brokers;
• banks;
• railway and airlines;
• shops and services on the Internet;
• financial pyramids and other swindlers;
• any companies, if you have transferred money from a card to a bank account.

If you paid with the physical use of a card, with a chip or magnetic stripe, a successful chargeback in Ukraine is in great doubt. Most often, banks will refuse the procedure.

If the payment was made with the input of the card number, CVC / CVV code - the system is on your side.

So, what is needed in order not to feed the dishonest business with your own money.

How a payment protest works​

The procedure is not available to everyone, only to competent users who know what situations to avoid and how to act in controversial moments.

To initiate a refund, you must fulfill some conditions:

• If you pay in cash, or from card to card, or to an electronic wallet directly, forget about the chargeback.
• If more than one and a half years (540 days) have passed since the moment of the transaction for Visa or MasterCard, or 360 days for the MIR payment system, forget it too.
• Try to resolve the issue peacefully. Contact the site's support service, negotiate in the messenger or chat.
• Explain your position. Attach a copy of the terms of use of the site, or an offer agreement. Records of telephone conversations with the site's technical support, screenshots of chat, messenger or e-mail correspondence - any proof of independent attempts to solve the problem is in your favor.
• If you agreed to all the terms of the site and confirmed your consent via SMS, the claim to the online store will be deemed unfounded. Read carefully what you agree to.
• Provide a document from the bank with information about the money transfer to the fraudsters' account.
• Correctly write a statement, indicate the reasons for canceling the transaction. The form can be obtained from the bank that issued the card, or downloaded from the chargeback service. You need a copy of the application in English, which will be sent to the head office of the international payment system (MPS). The application will contain the digital code corresponding to the operation.

Everything. In other cases, if there is a dispute with the seller, provide evidence and the issuing bank cancels the payment. This buyer protection is a standard operation.

Characters​

Chardjbek is always a last resort. If the point is not in your own inattention, but in outright deception, then you have to fight.

There are five parties involved:

1. The cardholder, that is, the injured party.
2. The bank that issued the card. Next, the issuing bank.
3. Visa or MasterCard system.
4. The legal entity to which the payer has a claim.
5. The bank in which the account is opened with the defendant. Next, the acquiring bank.

The holder requires a chargeback, writes a statement. The issuer, after verification, transfers it to the Ministry of Railways. They study the documents and ask for an acquirer. Further, there are two options for the development of events: if the acquirer agrees with the claim - a refund occurs; if you do not agree, connects the seller to the dispute.

The crooks become more inventive and, studying the chargeback, they try to formulate the rules for using the system in such a way that the consumer cannot start a dispute: all the risks are spelled out, and the client's inattention is not a reason to issue a refund. The acquirer will sympathize with the issuer, and will not be able to help in any way - not the case when "the client is always right."

Reasons to get your money back​

Cheating, technical problems, system glitches - a chargeback is possible. Here are the main reasons:

• The goods were not delivered, the amount was debited from the card, the seller does not respond.
• They did not forget to write off money for the service, but they are not in a hurry to provide. Unfortunately, a dishonest company can do nothing, without consequences for itself, up to 120 days. In most cases, this is four months from the date of the transaction or the moment when the service was supposed to be provided, or the goods were delivered. After this period, the operation can be launched by the bank.

Some banks indicate their own chargeback dates, despite the fact that this violates the rules of the PS. The time frame for initiating the procedure is from 45 to 180 days. Read the agreement with the bank that issued the card.

• The service or product does not match the description. Or photographs.
• The money was debited without the consent of the cardholder.
• The money for the product was charged twice.
• The seller did not provide full information, hid significant flaws, that is, deliberately misled the buyer.
• The withdrawal of funds on the bank card was successful, but the ATM did not issue them.
• They took out more money than the goods were worth.

If the situation is not resolved by the world, the owner of the site does not meet halfway, although the facts of dishonesty are obvious, then challenging through the bank is the only way out.

What is a chargeback service and how to use it​

There are online services that act as an intermediary between the bank and the cardholder. The service does all the operations on its own, providing the client with a report on how the business is progressing.

It happens like this:

• The user registers on the service. It is important to provide real data: name, email. Aliases will not work.
• The user explains the situation in which he finds himself.
• Provides evidence of fraud.
• The service takes care of all the worries. You can see how the process is going in your personal account in the chargeback service.

It is convenient if you do not have the time and desire to do everything yourself. And when you are afraid to lose sight of the important subtleties of the procedure.

It happens that the first time the bank does not accept the application and refuses the chargeback. This is not the end. The application must be resubmitted, it is possible to add more evidence. But it is necessary to meet the deadline specified by the bank in the refusal letter. It can be 3-4 days, or a week.

The sites dedicated to chargeback are full of comments from people who did not pay attention to the deadline for submitting a reapplication. Refunds were refused.

How a seller can minimize risks​

There is another side to the coin: the fraudulent buyer. Aside from jokes, there are whole "schools" on social networks where they teach how to cheat sellers from AliExpress, E-Bay. From any trading floor where there is buyer's protection. Refund is a goldmine for crooks.

How to protect an honest seller? Chargeback is not only a financial loss for an online store in the amount of the price of a product. Plus a fine for each return transaction up to 25 euros. Plus - loss of reputation.

The unfortunate truth is that there is no 100% seller protection. Loyalty to buyers is always higher than to online sellers. This is how the system works.

The main types of fraud on the part of the buyer can be divided into two types:

1. The fraudster used someone else's card, and the owner never slept. Either he paid with his card, but insists that no, not him. He did not give his consent, and does not know who used the card without his knowledge.
   The seller can protect himself from such a scam by connecting the 3D-Secure service in VISA. MASTERCARD - MasterCard SecureCode. The meaning is the same.
   When paying for a purchase, the cardholder must verify his identity by entering an additional security code. He can receive this code by e-mail specified during registration; to a phone number via SMS; by entering the previously received permanent code, which is known only by the bank and the cardholder; using a special one-time code card or device.
   This is enough to prevent the bank from believing the fraudster. Chargeback will be denied.
2. Returns due to misunderstanding. The buyer was dissatisfied, he did not imagine the service in his fantasies. Although the information provided is very clear.
   It's easier to defend yourself here. The site should have a section in which the terms of service are clearly spelled out. The relationship with the customer is recorded in the form of a contract. The possibility or impossibility of a chargeback, at whose expense the goods are returned or exchanged, are clearly stated.
   The user must agree to the terms of service by checking the box - read, agree.
   Also, the seller must retain all evidence of the service rendered. For example, a courier delivery receipt signed by the customer.
   Note to the seller. Fulfill your obligations on time and efficiently. If there is a hitch: there is no product in stock, there is no way to deliver it on time - talk to the client. As a last resort, offer to return the money. 99 people out of 100 agree to reconsider the terms and wait a bit. Talk and conflict is unlikely.
   Conscientious sellers - good luck in business. Honest buyers - fast chargebacks.
   Better yet, do not meet scammers on your way. Or to see them through and through, since the first option so far, no matter how sorry it is, looks like a fairy tale.