With many of us buying products and services from various online merchants, we all experience cancelled orders and credit card checkout payment failures at some point or the other. The But online credit card payments offer the option of reversal against cancelled orders or failed transactions either at the merchants end or at the card holder’s end.
Credit card holders are allotted a protection by the credit card issuing bank or company termed Chargeback. A chargeback allows cardholders to file a complaint regarding fraudulent transactions or cancelled payments. Once the cardholder files for a dispute to a chargeback, the credit card issuing bank or company starts an investigation to trace the transaction. The issuing authority then refunds the original value back to the card holder’s account if the complaint is found genuine. If the merchant proves to the bank that the cancellation happened at the card holder’s end, the issuing authority will penalize the card holder by charging a chargeback fee.
Let us look at 3 circumstances where a chargeback or reversal looks like the best option.
Some merchants allow complete refunds for cancelled orders within a stipulated time period. Other merchants do not return the funds as cash but rather give the cardholder an option to purchase any other similar or replaced product.
Before asking for a refund or chargeback, the card holder should go through the Terms and Conditions page on the merchants’ website or store.
Cancellation at checkout
Card holders can cancel any credit card based transaction at online or regular outlets.
They can use a direct cancellation of order in which case the purchase made is considered to be null or void and any payment made via card is reversed back to the cardholder’s account.
The other way is through a chargeback, usually within 180 days of the cancelled transaction date.
Sometimes the attendant or representative at a cash/card terminal may swipe the credit card twice.
This can happen if while swiping the first time a charge slip was not issued or produced. The cardholder is alerted of the dual swipe by SMS or by simply being vigilant. Dual swipe leads to two transactions being debited from the cardholders account. Immediately check with the bank or card issuing authority for the details regarding the double swipe. The bank then forwards the details to the merchant for reversal acceptance of the second transaction.