Credit Card Disputes and Chargebacks - What to Do When Things Go Wrong

Although most credit card companies go out their way in order to make each service as smooth and as accurate as possible, certain transactions can still go wrong. Situation such as unauthorized use, duplication and disputed amount of money charged on cards are some of the most common causes of credit dispute.

If this is the case for you or if there are some details in your billing statement that you need to clear, report the disputes to your card company. Fortunately, most companies have hotlines set up for this specific purpose. Any credit card dispute means that there will be no incurred interest when investigation begins. It is imperative that you notify your card company about the error because there are time limits that are attached with the procedure.SAAS chargebacks

In the case of charge back, there is a limit from the time of the transaction specified on the billing statement and it can range from 75 to 120 days, depending on the card company's conditions. Many credit card companies enforce limits in terms of confirming whether or not the cardholder wishes to go ahead with the dispute.

But what exactly is a charge back?

This is a process where the organization who issued the card such as credit union, bank or building society, will charge a proportion of the disputed amount back to the merchant's bank. The proportion of the charged back transaction may be a portion or the entire disputed amount. There are many reasons why a chargeback occurs but the most common are:

• Unauthorized transactions
• Non-receipt of documents required
• Items not received by the cardholder
• Merchant ignores a cancellation advice
• Services not rendered

The best way to avoid any sort of credit card dispute, cardholders must make it a habit to check their statement thoroughly for errors, unauthorized transactions, etc. If there is any transaction listed on your statement that you do not agree with, contact your service provider or the merchant to notify them of the direct debit cancellation.