Chargeback is actually a state that allows the consumers to ask for the reversal of a transaction in case the goods purchased do not meet the requirements specified or in case you Visa card has been charged for a transaction that you did not make. This is part of the Visa Scheme Rules that every financial institution has to implement if they issue Visa cards. The system works between both the banks i.e. yours and the bank of the merchant and cash still flows even if the merchant has stopped trading.

Chargeback requirements:

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There are a number of requirements that set you eligible for the chargeback are summarized below:

• You need to have a contract that is breached.
• Further evidences that enforce the breach.
• 120 days time limit on the claims.

• The time limit starts from the day when you realize the problem.
• If the object has been delivered to your address, the limit starts from the day when you have received it.
• In case that chargeback is for the flight ticket, it will start on the day the flight was set to depart.

Chargeback Cycle:

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The chargeback process begins the moment you report the issue to the card issuer. The following chain of processes flow if you request for a chargeback:

• The Visa Card Holder lodges the issue/complain.
• Issuer generates a reverse transaction electronically back to the acquirer.
• Acquirer receives the issue and forwards it to the merchant after validation.
• The merchant can either accept the chargeback or address it appropriately with the evidences and sends it back to the acquirer.
• The acquirer then reviews the information received from the merchant and forwards it to the issuer in case the details have been dealt with properly by the merchant.
• The issuer reposts the money back into the card holder’s account in case the chargeback has been addressed possibly else it moves the issue to the Visa for financial liability decision.
• Cardholder receives the dispute resolution information and is credited with the amount.

Chargeback resolution:

Chargeback can be resolved quite easily without the merchant losing the sale. They can come up with appropriate information and evidences about the transaction to ensure that they have provided the service at the right time with the right details. The best way to get done with the chargeback request is to give as much information as available to the acquirer that will help them remedy the chargeback. The best way to save your reputation as well as your good will is to come up with the best possible yet prompt reply as soon as you receive the chargeback request. This will help you a great deal as the acquirer will have no doubt about this anymore. In case the chargeback is valid and the request is made live, you should prefer to resolve the chargeback request outside the proper procedure to avoid any extra fees. No response should only be made when you assume that you have enough information to address the chargeback.

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