Use Chargebacks As an Insurance Policy for Online Purchases

So, you order something on eBay . Or Alibaba. Or some sketchy website you’ve never heard of because it has exactly the sneakers you need when you’re nowhere else. You know this is probably a sign that this is too good to be true … but you really need sneakers, so you foolishly dial your Visa number anyway.

And when the box arrives, the sneakers are in the wrong size or color, or just fakes. When you try to contact a company, it either A) is not responding, B) is refusing to offer a refund, or C) says you are responsible for shipping charges both ways. According to most of our moms, this is what you get when you buy things online .

But as one Reddit user recently pointed out , your credit card company can help you get your money back. How? A chargeback form that occurs when you dispute a charge on your statement with a credit card merchant.

For example, a Reddit user bought a defective item online. When trying to return it, the seller said they had to pay return shipping and a 20% restocking fee. When a user contacted Citibank to initiate a chargeback, the credit card issuer repeatedly stated that this was not possible.

Fortunately, the user knew their rights and, in the end, persisted. Here are their TL / DR situations:

“If you buy an item and the seller ships an item that is significantly different from the description or is defective, you have the right to reject the item and ask the seller to collect it at his own expense – regardless of what the seller’s return policy says.”

And if you’re not doing well with the merchant, your credit card company should use its influence on your behalf.

Generally, you can request a refund if you receive a defective, damaged item or service other than those described, or if you never receive it. (Click here to view a list of chargeback reason codes organized by the card issuer.)

Please note that the merchant has the right to dispute your claim, after which the credit card issuer must determine who is correct. If he takes your side, the seller must pay a commission plus a commission; if he side with the seller, the commission will be returned to your account.

Is your latest mistake on the internet suitable? Then follow The Motley Fool’s advice on how to contact your credit card issuer:

“Ideally, all credit card chargebacks should be made within 60 days of the date you receive the specified charge statement so that you have the full protection of the Fair Credit Accounts Act. Request a refund only by email (via the bank’s online support platform) or by mail. “

However, this policy should only be used as a last resort in situations where the seller refuses to comply with your (reasonable) requests. Because, as Redditors warn, asking for a refund can end up getting you banned from the merchant – if for some reason you ever want to shop from them again – and that’s not cool at all if you really don’t. need to. Repeated requests for chargebacks can also damage your relationship with your credit card issuer .

Use your power wisely, friends.


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