Chargeback claims: how to get your money back

If you have incurred excessive overdraft charges using your debit or credit card, you should try to reclaim them. Immediately you notice this, you should start talking directly to your bank, to come to an agreement. It takes a bit of effort, but it is worth it.

After all, you have nothing to lose, except maybe some time negotiating with the bank. Plus, you won’t be penalized because the case will be taken as a complaint. This guide is going to explain what you can do to get refunded by your bank.

Who can reclaim charges?

Any person can write or call their bank asking for a refund. Although it is a complicated process, it is still possible. If you are in real financial hardship, for instance, you have lost your job, you can use this as an argument to get refunded. Or, if that is not the first time you have been unfairly charged, so you are stuck in a spiral of charges.

What Scheme can I use to get my money back?

A chargeback scheme is set to help bankers to get their money back from their banks. It is an arrangement between banks and their customers, set to refund clients in case anything goes wrong when they spend on their cards. You can get your money through your credit, prepaid or debit card provider. With this system, you can get back the full amount of money you used.

Business woman

A chargeback scheme is, however, not the same as section 75. In fact, it is better in that it offers protection that the Section 75 doesn’t. For instance, with this scheme, you can get your money refunded for credit card transactions of any value while in Section 75 it only works if your purchase was £100 to £30,000.

Transactions covered by chargebacks

Unfortunately, not all transactions you will do are covered by this scheme. But the good thing is that it covers purchases of any value made by your card. Transactions included in this scheme are:

• If you made a purchase and it hasn’t arrived

• Your card was used fraudulently

• You are unsatisfied with the condition of the products described

• You are charged extra, more than what you agreed for a particular purchase or you are charged more than once

Note that you can use this scheme if you talked with the retailer and they have refused to give you your money back.

Which Card types offer Chargeback Protection?

1. Credit cards:

• Visa

• MasterCard

• American Express

2. Prepaid Cards:

• Visa

• MasterCard

3. Debit Cards:

• Visa Electron

• MasterCard

• Visa

• Maestro

How to Make a Reclaim with this Scheme

Once you notice you have incurred excessive overdraft charges, you should first try to resolve the issue with the retailer. If he or she refuses, then you can make a chargeback request. Here is how to make a chargeback claim:

A customer pays with a credit card at a store in Paris

1. Contact the card provider by phone, or by writing to them and tell them of the request you want to make through Chargeback.

2. Give all the details of the transaction you wish to be refunded. Some banks will also require you to provide evidence that you tried to get your money back from the seller. That includes letters, emails or phone calls.

After, you may be asked to fill a complaint form but other banks will after taking the details will start the claim for you. It is essential that you keep all your transaction receipts as the bank will ask for them.

The length of time taken to get your money back varies depending on the bank and how legit your issue is. While some banks will re-credit your accounts right away although reserving the right to take the money, until the claim is successful, other banks will investigate the complaint before crediting your account.

It is worth to try and reclaim your money back. But if your claim is rejected, and you feel the decision was made unfairly, you can take your case to the Financial Ombudsman who may be able to change the decision.