A credit card chargeback is a formal request made by a cardholder to their issuing bank to reverse a transaction. Instead of relying on the merchant’s refund policy, the bank steps in to investigate and resolve the dispute.
Common situations include:
- Unauthorized or fraudulent transactions
- Products that never arrived
- Services not delivered as promised
- Incorrect billing amounts
- Charges after subscription cancellation
Is Doing a Chargeback on a Credit Card Safe?
Yes. Credit card chargebacks are protected by consumer laws such as the Fair Credit Billing Act (FCBA) in the United States and similar regulations worldwide. These laws are designed to protect consumers from unfair billing practices and fraud.
However, filing false disputes or abusing chargebacks may result in denied claims or account limitations.
When Should You File a Credit Card Chargeback?
You should consider doing a chargeback on your credit card if:
- The merchant ignores your refund request
- You receive defective or counterfeit goods
- You are billed for something you canceled
- Your credit card details were stolen
⏰ Time limit: Most banks require disputes within 60 to 120 days of the transaction date.
Step-by-Step: How to Do a Chargeback on a Credit Card
Step 1: Verify the Transaction
Review your credit card statement and confirm the charge is incorrect or unauthorized.
Step 2: Contact the Merchant
Banks usually ask whether you attempted to resolve the issue directly with the seller.
Step 3: Collect Evidence
Useful documentation includes:
- Order confirmations
- Emails or chat transcripts
- Screenshots of product descriptions
- Proof of non-delivery
Step 4: Contact Your Credit Card Issuer
You can dispute a charge via:
- Online banking portal
- Mobile app
- Customer service phone line
Clearly explain why you are doing a chargeback on a credit card.
Step 5: Submit the Dispute
Once submitted, the issuer may issue a provisional credit during the investigation.
Step 6: Investigation and Resolution
The chargeback investigation usually takes 30–90 days. If approved, the credit becomes permanent.
What Happens After You File a Chargeback?
- The merchant is notified and can respond
- A chargeback fee is applied to the merchant
- The bank reviews both sides’ evidence
Merchants with high chargeback ratios may face higher processing fees or account termination.
Why Chargebacks Get Denied
Your chargeback may be rejected if:
- The dispute was filed too late
- Evidence is insufficient
- The transaction was authorized
- The merchant provides strong counter-proof
Strong documentation significantly improves approval chances.
Does a Chargeback Hurt Your Credit Score?
No—doing a chargeback on a credit card does not directly affect your credit score. However, you must continue making at least the minimum payment on your card while the dispute is open.
Failure to pay can negatively impact your credit history.
Chargeback vs Refund: Key Differences
| Aspect | Refund | Chargeback |
|---|---|---|
| Who initiates | Merchant | Bank & Cardholder |
| Processing time | Fast | Slower |
| Merchant fee | No | Yes |
| Investigation | No | Yes |
A refund should always be your first option if possible.
Tips to Win a Credit Card Chargeback
- File early
- Be factual and clear
- Upload strong evidence
- Avoid emotional language
- Keep records organized
Conclusion
Doing a chargeback on a credit card is a powerful financial safety net that protects consumers from fraud, billing errors, and dishonest merchants. When used correctly, it allows you to recover lost funds without damaging your credit or financial reputation.
Understanding your chargeback rights helps you stay in control of your finances and shop with confidence.