How to make a chargeback

A chargeback is the return of funds to a consumer, forcibly initiated by the consumer's issuing bank. Specifically, it is the reversal of a prior outbound transfer of funds from a consumer's bank account, line of credit, or credit card.


Chargebacks also occur in the distribution industry. This type of chargeback occurs when the supplier sells a product at a higher price to the distributor than the price they have set with the end user. The distributor then submits a chargeback to the supplier so they can recover the money lost in the transaction.


More information can be found on Wikipedia


1. Call the merchant who charged your card for the item in question and attempt to resolve the issue. If the charge was unauthorised, find out the details of the transaction, such as who authorised it, what ordering method they used and to whom it was shipped. If you ordered the item but never received it, or if the item was not as ordered or not in good condition when received, attempt to work out a mutually beneficial solution. If you can influence the merchant to reverse the charge voluntarily, you'll avoid the entire chargeback process. If they take longer then 15 days to solve this for you go to step 3 in this guide.

  • 2. Gather all the documentation you have about the questionable transaction. This might include the credit card statement, invoice, e-mails or other correspondence and any other paperwork related to the transaction. Hunt down any dates and other information you're likely to need for resolving the issue. This will help prepare you to discuss the situation with your credit card company should that prove necessary.

  • 3. Notify your credit card company about the problematic transaction if you've been unable to resolve the issue by contacting the merchant directly. Explain the situation clearly, give dates and any other pertinent information and tell the company's representative that you'd like him or her to remove the unauthorised charge from your account.

  • 4. Provide any written documentation your credit card company requests about the transaction. This will help speed up its investigation and allow the company to make the chargeback faster than could be done without the proper paperwork to back up your assertions.

  • 5. Act quickly instead of procrastinating. This will ensure that you don't forget about the issue and unintentionally allow the 60-day time limit to elapse before you initiate the chargeback process. Sixty days can seem like a long time; but, with all the other things going on in our lives, it can pass surprisingly fast and with it our opportunity to turn a bad charge into a good chargeback.