If you’re a cardholder researching how to do a chargeback, you’ve come to the right place! We’re going to show you the best way to resolve a disputed transaction to get the best results. There are several valid reasons to dispute a transaction. We’ll go over each of them, but with very few exceptions, you’ll want to follow our simple 3-step process to resolve your dispute.

First, let’s look at the eight issues that constitute a valid dispute for a transaction:

  1. Transaction not authorized (fraud)
  2. Goods/services not received
  3. Merchandise defective or not as described
  4. Recurring fees after cancellation
  5. Charged more than once for a single transaction
  6. Charged the wrong amount
  7. Wrong currency
  8. Credit not received

If you have a transaction that falls into one of this categories, you have a credible dispute for a chargeback on your hands. However, you also have an excellent case for getting a refund. The difference between a chargeback and a refund may seem negligible to you since the end result is the same, but there is a difference. Appreciating that difference can yield some added benefits for you. how do chargebacks work

Follow these steps in dealing with your dispute to see how:

Step 1: Contact the merchant!

Too often, cardholders take their disputes to their bank because they know their bank will most likely give them the refund they seek. But it is important to realize that in this day and age, retailers are more than happy to issue a refund for most disputes, no questions asked. Not only that, you are doing the merchant a favor by contacting them first, and they will show their appreciation. Merchants worth their salt will want to retain you as a customer. Going through the merchant may get you more than just a refund. A shrewd cardholder can maneuver to earn some reward or incentive for bringing the issue to the merchant. The last thing a merchant wants is to deal with a chargeback or lose a customer.

Step 2: See Step 1

We can not stress this one enough, go through the merchant first. You will achieve the same outcome, plus you’re in a great position to get a little something extra in return.

Step 3: If steps 1-2 fail, contact your issuing bank.

In cases of fraud, where you are seeing multiple unauthorized charges on your statement, you should absolutely contact your issuing bank. They are in the best position to deal with fraudulent use of your credit cards.

The chargeback was created by credit card companies to empower cardholders to fight fraud, but also as a recourse when a merchant won’t help you resolve any of those above issues, especially numbers 2-8. That means you should first go through the merchant for a refund, and use chargebacks as a last resort because that is how they were designed. Trust us when we say that any merchant who knows what they’re doing prefers to issue a refund than to deal with chargebacks. For more tips like these, make sure to check out our website.