What is a chargeback?

A chargeback is a process used when a customer disputes a charge on their credit card bill. It is a way for a customer to reverse or dispute a credit card transaction and receive a refund. The chargeback process begins when a customer contacts their credit card company and files a dispute. The credit card company initiates an investigation into the disputed charge and contacts the merchant to verify the transaction. If the merchant does not respond or if the credit card company finds any evidence that the transaction is wrong, the credit card company will issue a chargeback, which reverses the transaction and refunds the customer for the disputed amount. In New Jersey, the Fair Debt Collection Practices Act (FDCPA) protects consumers from abusive debt collection practices, including chargebacks. This act requires that creditors and debt collectors follow certain procedures before issuing a chargeback, such as providing the consumer with adequate notice and an opportunity to dispute the accuracy of the bill. Additionally, the FDCPA requires that the credit card company must provide the consumer with written evidence of the chargeback, including an explanation of the consumer’s rights. This ensures that the customer is fully aware of their rights in regards to the chargeback process.

Related FAQs

How can I get my credit report corrected?
How can I protect myself from identity theft?
What is the Fair Debt Collection Practices Act?
What are my rights when disputing a credit card charge?
How can I dispute errors on my credit report?
Is it possible to obtain a refund if I have been the victim of fraud?
What kinds of remedies are available from credit card dispute resolution?
How do I report credit card fraud to the authorities?
What rights do I have under the Equal Credit Opportunity Act?
What should I do if I am accused of fraudulent charges on my credit card?

What is a chargeback?

Related FAQs

Related Blog Posts