What is a chargeback?
A chargeback is a process initiated by a bank to reverse a credit card transaction. It is a way for customers to dispute a transaction and have the money refunded to them. This process is regulated by credit card companies and enforced by state and federal law. In New York, a chargeback may be triggered if the customer believes that they were charged by mistake, if the product or service they received was not as promised, or if the customer was charged for something they did not authorize. The customer can initiate a chargeback by filling out a dispute form and submitting it to their credit card company. When a chargeback is initiated, the credit card company reviews the transaction and decides whether or not to honor the chargeback. If they decide to honor the chargeback, the customer’s credit card account will be credited with the disputed amount and the merchant’s account will be debited for the amount of the chargeback. In the event of a chargeback dispute, the credit card company may require additional information from both the customer and the merchant. The merchant may also be required to take steps to prevent future chargeback disputes. It is important for merchants in New York to be familiar with the chargeback process, to ensure that they understand the possible consequences of a chargeback, and to take steps to ensure that chargeback disputes are avoided in the future.
Related FAQs
What is a zero liability policy for credit card fraud?What is a chargeback?
What kind of protection do I have if I'm a victim of identity theft?
What is the most important information to know about a credit card?
Do I have any recourse of action if a lender violates the Fair Credit Reporting Act?
How do I choose the best credit card for my needs?
How do I earn rewards with my credit card?
What are the advantages and disadvantages of using a prepaid credit card?
What are the different kinds of interest rates for credit cards?
What is a foreign transaction fee?
Related Blog Posts
The Basics of Credit Card Law: What You Need to Know - July 31, 2023The Pros and Cons of Credit Card Use - August 7, 2023
What Is the CARD Act and How Does It Impact You? - August 14, 2023
5 Tips for Understanding Credit Card Law - August 21, 2023
Understanding the FDCPA and Its Impact on Credit Card Law - August 28, 2023