Most often, a payment dispute (chargeback) occurs in cases of fraud or when the goods ordered online do not arrive after a long wait. The consumer can also contest the payment for other problems, such as a product that does not match the description or the order, for an overcharged amount. Another possibility for dispute (chargeback) is awhenthe cardholder was promised cancellation of the payment within a certain period, but it was not followed and the amount was not refunded.
A very important point in the dispute is for the customer to explain exactly his problem, provide all possible evidence and documents (order, correspondence with the merchant), and, above all, be honest with his bank.
Concealing information or providing it incorrectly, even deliberately hiding part of the situation, can lead to an inappropriate choice of the dispute reason code, which leads to the loss of the dispute, respectively - the amount of the transaction, explains Ms. Anna Angelova , Director "Payment Institution", BORIKA AD. She reminds that before shopping from an online trader, it is very important to check how secure it is - are there clear rules for returning the goods, a deadline for this and to which address it should be done, what are the payment methods and most importantly - what is the delivery time.
If a problem occurs, the user should contact the seller first.
In the event that he paid by card but does not receive a response from the merchant or doubts that he will receive his order at all, he should not wait two or three months but seek a competent solution to the problem at his bank as soon as possible, advises Mrs. Angelova. Of course, whether a delivery will be delayed also depends on where the order is placed, if any technical production time is required, and the normal delivery time.
From the start of the chargeback procedure, a response from the merchant's bank is expected within approximately 30 days for Visa cards, approximately 45 days for Mastercard and approximately 20 days for Bcard.
The chargeback request is issued by the bank issuing the card. To access this procedure, the consumer must submit such a request in person, but with some banks, it can also be done online.
What are the stages?
Most often, the dispute stages are limited to three: chargeback, representation, and pre-arbitration, and each takes about 20 to 45 days.
If the trader/chargeback recipient's bank does not respond within the first stage, the case ends in favour of the complainant. The amount should be returned to the customer after the trader's bank collects it. This means that the seller did not claim it back, as he takes the blame or simply has no evidence in his favour.
If the merchant's bank provides evidence in favour of the latter and defends the payment, the dispute process is extended. With the next action – representation, the merchant's bank refuses to accept the dispute and defends its client (respectively – the merchant).
Of course, if the cardholder's bank continues to refuse the situation, re-arbitration is a possible next move for the latter. At this stage, a 30-day period is given during which, if the dispute cannot be resolved, it can be referred to arbitration—a commission of the relevant international card scheme or the local card scheme. Another option is to try goodwill or mediation.
When can the application be submitted?
The terms by which customers can dispute their payments vary depending on the bank and the type of card used. That's why it's a good idea for consumers to check the terms and conditions of their credit and debit cards beforehand, as well as what fees they may have to pay.
The Law on Payment Services and Payment Systems sets the deadline for disputing a transaction, which is 13 months after it was made.
However, Sonia Spasova, director of ECC Bulgaria, advises that before proceeding with this procedure, it is essential that the consumer try to solve the problem directly with the trader.
Every problem is different, and therefore, if consumers have questions or doubts, they can seek advice from their bank or ECC Bulgaria.