What is a chargeback: how to apply to the bank and get the money back

Chargeback is the process of a bank canceling a card transaction made by a Visa or MasterCard electronic card holder at a retail outlet or online store. Chargeback is a chargeback, a procedure for challenging a banking transaction by the cardholder. In simple words, chargeback is the ability to return money back to the card in the event of unlawful actions by the seller.

The Cosmovisa chargeback service is a free online service that allows you to return money using the chargeback procedure. The service does not require special knowledge. Absolutely any user can make a return. You just need to register, fill out a step-by-step application and expect a refund on your card. It's simple!

What is a chargeback?

The procedure for forced cancellation of a completed payment for Visa and MasterCard cardholders is called “ chargeback” .

You can use chargeback if:

1. A technical error occurred during a banking transaction:

• funds were debited from the account as a result of fraudulent activity;
• the online store refuses to refund money for low-quality products;
• the company that is supposed to provide the service/product has gone bankrupt;

1. The services/products provided are fundamentally different from those paid for by the client or are not provided at all.

To carry out the chargeback procedure, the client must have indisputable evidence of the illegality of the payment transactions carried out. Otherwise, claims will be rejected.

There are three parties involved in this procedure:

1. The buyer and his bank;
2. The seller and his bank;
3. The payment system used to make the transaction.

Refunds (chargeback) are made within the framework of agreements between these three parties.

Chargeback is a tool for influencing one bank on another in certain situations to return funds withdrawn/transferred through the payment system.

Procedure

The return procedure itself is not complicated. The main condition is that the client does not miss the application deadline.

To start a chargeback, a person needs to contact the bank that issued the card. There he writes a free-form application for a refund (chargeback) and indicates the reason why he wants to do this. The text of the application indicates the problem that has arisen, the client’s contact information, card/account number and the grounds for the complaint. Sometimes it is necessary to attach to the application copies of documents that confirm identity and evidence of poor-quality services/products or fraudulent activities. The latter has a significant impact on the bank’s positive decision.

Having accepted the application, the financial institution contacts the payment system with a request. There is a special department there that accepts claims for consideration. If the claim is justified and there is evidence of dishonesty, then representatives of the payment system contact the recipient’s bank with a request to return the buyer’s funds. The second party to the dispute has from 45 to 180 days to protest the buyer’s request and provide arguments in defense of the correctness of their actions.

The information received will be carefully checked by representatives of the payment system. Only after studying the arguments of both sides is a final decision made.

The chargeback operation is a serious financial instrument. It is carried out only in cases of truly low-quality or fraudulent actions. It cannot be implemented just like that, according to the client’s momentary desire.

Chargeback online

Today there are a large number of companies that offer to help with refunds (chargeback). However, some of them ask for an advance payment of 10% of the lost amount. Others pay for services upon receipt of money. What makes people turn to such companies? This means there is no need to visit the office, having completed the entire procedure online or by phone.

If you decide to carry out the refund procedure (chargeback) online, you should use the services of your bank. Thanks to Internet banking, you no longer need to visit a branch. A specialist consultant will prompt and help fill out the necessary form, and then accept the client’s request.

The main banks of the Russian Federation operating in the financial market today help their clients resolve the issue of returning money. Some are more loyal in this matter, others have a stricter position, and the package of required documents is larger.

An application to initiate a refund procedure is possible.

How do card payment systems work?

There are more than 7,000 banks and over 16 billion payment cards in the world. About 400 billion payments are processed through them annually. Almost 70,000 transactions per second are transmitted through the VisaNet network alone. Even a thousandth of this volume cannot be processed by any single bank: there will not be enough time or money.

The card payment system is a high-tech central accounting department that provides three key tasks:

• card verification (payment authorization);
• debt accounting, repayment of mutual obligations of banks, summing up (clearing);
• actual transfer of total amounts between banks (mutual settlements).

The system builds and develops the necessary infrastructure: huge data centers, fiber optic highways and communication satellites. And makes sure that all participants behave according to the rules.

According to current data, the following payment systems are leading in the world:

• UnionPay;
• Visa;
• MasterCard;
• "WORLD".

Sberbank

, it is prohibited to refuse clients to accept documents for a refund (chargeback) . However, Sberbank of Russia has acquired the reputation of a financial institution that does this reluctantly. In most cases, the human factor in the form of incompetent employees is to blame.

But even in this situation, you can find a way out:

• call a senior employee or head of department;
• send a complete package of documents to the main office of Sberbank by registered mail with notification;
• contact another department.

The chargeback procedure at Sberbank itself is described below.

How to make a chargeback in Sberbank?

In case of any fraudulent actions with money, poor-quality service or undelivered goods, a Sberbank client has the legal right to contact any branch and apply for a refund.

You must have with you:

• a document that confirms his identity;
• card service agreement;
• correspondence with the seller;
• act on a defective product/service;
• statement. The latter can be downloaded below.

The application period for a chargeback is 120 days from the date of the transaction.

Sometimes Sberbank employees indicate a shorter period, but this is not legal and gives a person every right to apply to the arbitration of the payment system.

Application (download)

contacting Sberbank.

VTB 24

BTB 24 is the possibility of returning the client’s funds, if there is a compelling reason, within a certain time without the consent of these actions with the supplier of goods/services.

Reasons why a chargeback may be issued:

• the product/service has been paid for in full, but the supplier has not fulfilled its obligations;
• the supplier, when making a payment without notifying the client, independently changed the payment amount;
• funds were debited from the client’s card by fraudsters;
• money for payment for one service/product was written off twice;
• the product/service does not correspond to what was paid for.

The client's application period is 120 days from the date of the transaction. If the person did this later, then he gave a legal basis to the bank to refuse to initiate a chargeback.

Chargeback in binary options, HYIPs, pyramids and other scams

Attention!

PS Mastercard does not provide chargeback for funds transferred to brokerage accounts. For this reason, returning funds transferred from Mastercard cards to the accounts of dubious companies is extremely problematic, but through VISA and MIR it is quite possible.

If you, your relatives or friends paid money to scammers using a plastic card, then a chargeback will be the last real opportunity to return your funds and there is no point in not trying to implement it.

To save your time and increase the likelihood of a refund, consult with a specialist on the issue of chargeback. Consultation is free.

Or leave a request in this form.

Tinkoff

Tinkoff Bank accepts applications from citizens for a full or partial refund of money (chargeback) in case of fraudulent activities or poorly performed services. The client can submit an application in person or through a personal online account. In order for the return procedure to be launched, a person must complete:

• sample advisory statement (forms can be downloaded on the official website);
• statement of the transaction;
• service agreement with this bank;
• conclusion about a product or service.

The term for processing a chargeback at Tinkoffbank is up to 40 days from the date of the transaction. If the decision is positive, funds are returned to the client’s account after 1-2 months.

If the bank representative refuses to accept the application, the client has every right to apply to the IPS arbitration.

1.Regulatory and legal framework:

Federal Law “On the National Payment System” dated June 27, 2011 N 161-FZ (you can view it on the official website of ConsultantPlus - https://www.consultant.ru/document/cons_doc_LAW_115625)
Terms of banking services for individuals of PJSC Sberbank (you can view it on the official website of Sberbank PJSC –

https://www.sberbank.com/common/img/uploaded/files/pdf/udbodo280617.pdf)

Visa Core Rules and Visa Product and Service Rules (can be found on the official Visa PS website https://usa.visa.com/dam/VCOM/download/about-visa/visa-rules-public.pdf)

Rules of the Visa payment system for carrying out transactions on the territory of the Russian Federation (can be found on the official website of Visa - https://www.visa.com.ru/visa-everywhere/about-visa/legislation.html).

Alfa Bank

Holders of Mastercard and Visa cards who are serviced by Alfa Bank are entitled to chargeback.

It is worth noting that this financial institution does not provide a special application form for a refund (chargeback). Therefore, the client can use the application of another bank. It must be accompanied by transaction statements and a response from the service/product provider.

The bank specialist is obliged to accept the client’s application and begin the chargeback procedure. The financial institution has from 60 to 120 days . If the bank has not fulfilled its chargeback obligations to the client or the person feels that the procedure has not been fully completed, he has the right to file a complaint with the IPS arbitration.

Sample application

The application is prepared by the initiator and executed in two copies - in Russian and English. The following must be indicated:

• challenge code;
• write-off amount;
• date and payment number;
• account or card details;
• description of the essence of the unfair act.

The Sberbank application form can be downloaded here

Chargeback on the maps

All cards issued by Russian banks are serviced in several international payment systems:

• Mastercard; Visa;
• Maestro;

Each of them has its own chargeback rules. Let's take a closer look at them.

Let us immediately make a reservation that the rules for the refund procedure change every three months. They include clarifications and additions, which international payment systems are in no hurry to translate into Russian.

A prerequisite for chargeback is that the card holder completes the transaction. Otherwise, the client will immediately receive a refusal.

Mastercard

The owner of a MasterCard card has the right to request a refund of his funds in the cases already described above:

1. fraudulent activities:
   failure to provide previously paid services/goods;
2. their poor quality delivery;
3. debiting more funds from the card than previously stated;
4. other.

The period for filing a chargeback application depends on the specific case and can range from 45 to 120 days from the date of the transaction.

If the buyer's claims have not been satisfied or the seller considers them to be unfounded, the request for a refund is submitted to the MasterCard arbitration department. His decision is considered final. However, within 45 days the client has the right to challenge the verdict.

These rules apply to the Maestro payment system, which is one of the branches of the MasterCard system.

MasterCard reason codes

Visa

In April 2018, the Visa payment system clarified the terms and grounds according to which a person can demand the return of their funds (chargeback).

On the territory of the Russian Federation, the client can only familiarize himself with the general rules for making payments. More accurate information is contained in English-language sources.

Let's look at the main points:

1. The payment system has a number of serious restrictions on the amount of refund. This is 25 dollars translated into rubles at the Central Bank exchange rate. Smaller refund amounts will not be considered.
2. The deadline for filing a claim for a refund (chargeback) is 120 days from the date of the transaction. In certain cases, upon agreement with the payment system and the servicing bank, this period may be 540 days from the date of payment. After this, claims will no longer be accepted.

When submitting a request for a chargeback, the client should be aware that the defendant may deliberately delay the response time. Sometimes financial institutions and payment systems themselves do this, demanding additional information or new evidence. Therefore, having decided to return your funds, you need to fill out the request as quickly as possible.

Visa Chargeback reason codes

World maps

The World Map or “MIR” payment system appeared relatively recently on the territory of the Russian Federation, but is already actively used. It provides for a chargeback procedure in the event that the seller refuses to return funds for unperformed services or undelivered goods. The deadline for filing an application depends on the specific situation and can range from 30 to 540 days from the date of the transaction.

The decision to return the money is made only after carefully studying all the points and receiving information from both parties.

It is worth noting that in case of fraud, the initiator of the chargeback will be fined under the current Regulations on payment systems.

Pitfalls of the procedure

• One of the conditions for a successful chargeback solution is the presence of sufficient money in the opponent’s (seller’s) account for a chargeback.
• In addition, a confirmed and implemented charter back can be challenged, i.e. the seller has the right to make a counterclaim, upon approval of which the money will be returned to him in the same manner.
• The difficulty of conducting a chargeback in relation to brokerage transactions on the foreign exchange market (Forex), which are carried out with the involvement of payment services such as ROBOKASSA, acting as an intermediary, thereby bypassing the direct acquiring mechanism. In most cases, to successfully resolve a case, it is worth engaging professional lawyers who can prove the involvement of a particular broker in an illegal transaction.
• Unreasonable underestimation of the deadline for filing a chargeback application by banks, which is a clear violation of the provisions of the PS. It is difficult for an ordinary citizen to understand the intricacies and subtleties of the legal system, especially in the absence of Russian-language information sources, which is what unscrupulous management of banking institutions takes advantage of.
• Incorrect calculation of the period from which the period during which a chargeback claim must be filed begins. The starting point is not always the date of payment; in some cases, the date of expected delivery of goods or the expected period for the provision of services is taken as a basis.
• When making a money transfer, always clearly and unambiguously record its reason and purpose, this will allow you to avoid double interpretations when further considering the controversial issue.

Yandex money

Payments via the Internet using virtual wallets (Yandex.Money, Qiwi, etc.) are very popular today.

If necessary, a person can make a refund to his account by filling out a request automatically.

If for some reason this cannot be done automatically, the client must create a special payment order. It should indicate the following things:

1. Details of the person or organization that made the payment.
2. Recipient details, which are standard Yandex.Money details. They can be found on the official website of the wallet.
3. Indicate the number of the personal account to which the funds will be returned. This information is provided in the client’s personal account, section “cash desk”.
4. Be sure to indicate the number and date of the agreement between the client and Yandex.money.
5. The last one is the number of the transaction that needs to be cancelled.

In the event that the client does not have enough data to fill out a payment order, he can submit an application. The text of the letter states what amount and under what agreement must be returned.

After filling out the payment order, the client needs to contact his servicing bank. He makes a request to the recipient's bank. The defendant carefully examines the buyer's claim and decides whether to return the money or not. Returned funds from the personal account are transferred to Yandex. To the cashier, and then to the client’s wallet.

Step-by-step receipt manipulation

It depends on the manipulation which specific operation is cancelled. Often the manipulation carried out between the trader and the consumer is dissolved. To use this procedure, you must have a client agreement. It directly regulates all disagreements that have arisen between the two parties to the conflict.

When the requirements of such an agreement are not met, there is a reason to initiate a chargeback operation. You may also need a chargeback when sending funds to the wrong recipient. In any circumstances, there are specific specifics of compiling a manipulation.

The events for a chargeback are stereotypically executed:

1. First of all, you need to order a report on completed transactions from the bank that carries out the launch in order to find a specific operation that needs to be protested.
2. A report is required from the credit company where the funds were sent to confirm in order to receive funds.
3. A letter is drawn up and sent, which will require you to complete the chargeback procedure.
4. In such a paper, a request is written for the return of finances, and the main thing is to pay attention to a detailed description of the reasons for the operation being performed.
5. It is preferable to attach various confirmations to the letter, due to which in reality it is necessary to return the funds.
6. An application for the implementation of a chargeback operation is drawn up, drawn up according to the Ministry of Railways form.
7. The documentation must contain links to other documentation and confirmation.
8. All documents are sent to the economic company, where they are undoubtedly accepted and registered, and the user is provided with a certificate indicating the date of acceptance of the application.
9. The answer must come within 2 months, and often a positive decision is made, which leads to the necessary funds being compensated to the victim’s personal account.

Reviews

The refund procedure (chargeback) really works, and it is worth resorting to if the client was deceived or received a poor-quality service. Most often, chargeback is used by people who have suffered from the actions of brokers or decided to make a purchase in a Chinese/American store. Below are their reviews.

Sergey V., 37 years old.

For a long time I was courted by Forex broker Andrey. Everyone suggested trying their hand at investing. After a year of his persuasion, I agreed. At first everything was great. The transactions were profitable, I even took out a bank loan. One day I decided to take half the amount (I already had more than 17 thousand dollars) and told Andrey about it in the evening. In the morning my account was empty. Andrey refused to talk to me. I started looking for opportunities to get my money back and came across the chargeback procedure. On the Internet, some agencies offer assistance with refunds. Some take advance payment, while others do not. It’s good that I came to the forum and read reviews about the work of such agencies. With the help of friends and people who suffered the same as me, I found application forms and attached correspondence with Andrey. It was time well spent. I managed to return half the amount.

Vitaly K., 21 years old.

I placed an order on AliExpress for $385. The seller received the money and assured me that the purchase had been sent. As proof, he sent me a poorly readable scan of the shipping receipt and the parcel number, by which I can track its movement in the Russian Post system. Imagine my surprise when the parcel turned out not to be in my name, but in the name of another person living in Nizhny Novgorod (I myself live in Saratov). Persistent appeals to the seller and the Russian Post service did not yield any results. I did not receive my purchase. The seller did not respond to my persistent requests to return the money for the goods that did not arrive to me or to send a new one in exchange, and then completely stopped communicating. Many thanks to Qiwi and Visa support service. Their specialists helped in resolving my issue. After applying within 21 days, the money was returned to my account.

Watch the video for step-by-step instructions for a refund:

Not every buyer and not in every situation can use this method of returning their funds. There are certain rules specified in the agreement between the cardholder and the bank. When accepting an application from a person, a financial institution carefully studies the situation and only then decides to launch the chargeback procedure.

Is the seller protected from chargeback?

While reading, you probably wondered what it means for the seller to protect himself from a chargeback and why is it important for them to protect themselves from returns? If yes, then it is important for you to know the following. When initiating an application for the chargeback procedure, your bank must present a claim to the acquiring bank and the seller. The seller is given time to provide information on your situation, whether everything was really as stated in your words. This is also necessary to ensure that companies do not suffer from fraudulent actions of the buyer. Therefore, remember everything, especially what documents you signed, this will help when making a refund.

Another bonus in favor of the seller is that, according to the legislation of the Russian Federation, chargeback is not a service provided by the bank that issued the card. Therefore, banks sometimes interpret this in their favor and do not accept applications, which benefits the fraudulent seller. Although, according to the agreement between the bank and the payment system, they are obliged to do this. An exception unless otherwise stated in the agreement between the cardholder and the bank. Below is an example of a letter from a bank that violates the cardholder's rights to dispute a transaction.