16/03/2023
Grounds for attempting a chargeback vary according to card company rules. A cardholder has a specified time under the credit card’s conditions of use to dispute a transaction. Failing that, it is assumed the cardholder has accepted responsibility to pay.
A chargeback attempt may fail if there is not a valid reason for it, and card issuers are unable to force a merchant’s bank to refund credit card payments.
If a customer makes a chargeback request on the basis that he or she has not authorised the transaction, the customer's bank will charge the transaction back to the merchant’s bank. The merchant will be asked for proof of the transaction. If the merchant has information showing the cardholder authorised the transaction, and no other chargeback right exists, the transaction is processed back to the cardholder’s account.
If proof of purchase isn’t supplied within the required timeframe, the cardholder’s bank can charge the transaction back. If the merchant’s bank can’t then establish that the cardholder authorised the transaction, it has to accept the chargeback and debit the merchant.