Chargeback Fee

techguy81 · 12 June 2013 at 4:38PM

Can somebody kindly point me in the direction of a good, in-depth resource to help me understand how chargebacks work please?

I sold an item over the telephone through my business. Customer said he was collecting but never did. About a month later, despite telling me he would be collecting soon and making no mention of wanting a refund, the customer did a chargeback.

I received no correspondence from the customer or bank re the chargeback and I've been charged a small chargeback fee, which I am annoyed about because if the customer asked for a refund, I would have happily given one and no fees would have been charged. I wasn't, at any stage given a chance to dispute the chargeback, is this normal?

magpiecottage · 13 June 2013 at 7:32AM

I suggest you complain to the bank pointing out that a contract existed (or more accurately, still exists) between you and the purchaser and they had never contacted you about the matter.

Wywth · 13 June 2013 at 8:45AM

You could pursue the purchaser for the original purchase price, and possibly the consequential costs of them reclaiming the money originally paid via a chargeback (i.e. the chargeback fee you incurred), perhaps via the small claims court if appropriate.