Chargeback Claims

Chargeback works through the card schemes — Visa, Mastercard, and American Express all have chargeback rules that their member banks must follow. When you raise a chargeback, your bank (the issuing bank) contacts the merchant's bank (the acquiring bank) and requests a reversal of the payment, citing one of the card scheme's chargeback reason codes.

Common chargeback reason codes (the circumstances in which a chargeback can succeed) include:

• Goods or services not delivered — you paid but nothing arrived
• Item significantly not as described — what arrived was materially different from what was advertised
• Duplicate processing — you were charged twice for the same transaction
• Fraudulent transaction — you did not authorise the payment
• Transaction cancelled — a subscription or service was cancelled but charges continued
• Credit not processed — the merchant agreed a refund but it never arrived

The merchant can respond to a chargeback with evidence that the goods were delivered or the service was provided. If the merchant provides convincing counter-evidence, your bank may reject the chargeback. However, if the merchant does not respond within the prescribed timeframe, the chargeback is generally accepted automatically.

Chargeback time limits vary by card scheme and reason code, but the most common rule is that you must raise the chargeback within 120 days of:

• The transaction date; or
• The expected delivery date (if later) — for example, if you paid in January for goods expected in March, the 120-day clock starts from March
• The date you became aware that a service would not be provided

Some card schemes (particularly American Express) may have slightly different rules. In practice, you should raise a chargeback claim as soon as you become aware of a problem — delaying beyond 120 days will likely result in the claim being rejected on time limit grounds.

There are some exceptions. For unauthorised transactions (where you dispute that you made the payment at all), the timeframe may be different. For Section 75 claims (credit cards only, purchases £100–£30,000), the normal six-year limitation period for contract claims applies, which is much more generous than the chargeback window.

To raise a chargeback:

1. Contact your bank or card issuer — call the number on the back of your card, use the bank's app or online banking, or write to them. State that you want to raise a chargeback dispute and give them the transaction details.
2. Explain the reason — tell your bank why you are disputing the transaction (non-delivery, item not as described, fraud, etc.).
3. Provide evidence — give your bank any evidence you have: the order confirmation, correspondence with the merchant, screenshots, delivery records, or evidence that the merchant has ceased trading.
4. Show you tried to resolve directly — most banks expect you to have contacted the merchant first. If the merchant is unresponsive or has gone bust, say so.
5. Keep records — note the date, the name of the person you spoke to, and any reference numbers given.

Your bank has up to 45 days to investigate and provide a decision on most chargeback claims. They may provisionally credit your account while the investigation is ongoing.

If your bank refuses your chargeback claim, you have several options:

• Ask for reasons: The bank must explain why the chargeback was rejected. If the reason is that the merchant provided counter-evidence, ask to see that evidence.
• Provide additional evidence: If you have further evidence that the merchant's defence is incorrect, submit it and ask the bank to reconsider.
• Escalate to the Financial Ombudsman Service: If the bank upholds its decision after internal review, you can complain to the FOS (free of charge) within six months of the bank's final response. The Ombudsman can require the bank to pay the chargeback if the bank handled your complaint unfairly.
• Consider Section 75: If you paid by credit card and the purchase was between £100 and £30,000, consider whether a Section 75 claim may be stronger — it is a statutory right and harder for card issuers to refuse.