Experiences with chargebacks

vtc6

I make a lot of purchases at work and for projects. I've always relied on the protection of DSR and chargebacks. I know now that DSR no longer applies, I cant require a refund just because... bit of a shame as it's difficult to know the quality of an item without seeing it.

Of the thousands of purchases I've only ever twice had to launch a chargeback. In one instance the seller didn't defend and in the other the bank said they don't want to bother so they just refunded the money from their own pocket.

What's concerned me is a comment in another thread whether someone has suggested that, once a chargeback is launched, if a merchant defends and denies goods are not as described then the consumer will loose regardless.

What are the real life experiences with chargenbacks? Does the bank evaluated both sides claims, and look at the published description of the goods and make a judegment? Or in practice is it a one sided outcome?

InsideInsurance

The DSR has been replaced by the Consumer Contracts Regulations (CCR) but both pretty much only apply to B2C transactions so if you are buying for work then its likely that neither apply/ applied

It would be interesting to see some actual statistics on chargeback success rates because if you look at small business forums many say not to bother defending chargebacks but to send a LBA and litigate because the process is so heavily slanted towards the consumer. On the flipside you get people on here posting about having "lost" chargebacks - though in most cases it appears to be that their bank refusing to raise one instead of it actually being defended and lost.

Really, look to buy from merchants that have a reasonable returns policy and accept that as a business you have less statutory protection as your supposed to be big/ old enough to deal with things like breach of contract yourself.

bris

That would be me. As retailer for the last 25 years I have never lost a chargeback I have defended. The banks simply can't and wont take one word over another without proof, this is why chargebacks are great for non delivery as this proof is simply proof of delivery.


When it comes to not as described being fought the banks are open to merchants suing them for chargeback as customers do try to use it as an excuse, so their stance is civil law, the courts decide not them.


The banks chargeback system is not a right, the banks try to help but when it gets complicated they are out.

Cyberman60

I've never lost a chargeback either, and I've had them for undelivered goods, double charges and insurance CPAs.

InsideInsurance

Cyberman60 wrote: »

I've never lost a chargeback either, and I've had them for undelivered goods, double charges and insurance CPAs.

So given you said "as well", presumably you mean you are also a retailer and have always won against the customer? I suspect you havent read properly what you agreed you were in the same boat as given you mention insurance

Cyberman60

InsideInsurance wrote: »

So given you said "as well", presumably you mean you are also a retailer and have always won against the customer? I suspect you havent read properly what you agreed you were in the same boat as given you mention insurance

No, as a customer. Apologies if any misunderstanding.

vtc6

Thanks for all the replies. It's actually reassuring. I should clarify that half my purchases are for work and the other are for personal projects outside of work that I do a lot of, so it's not just business purchases.

So from the comments the banks do mediate but need evidence. Bris, I suspect that if you've never lost it's because you are equally meticulous with the running of your business and don't make mistakes!

vtc6

Oh, also the £100 minimum on chargebacks. Is this a bank rule or law? Both the chargebacks I issued were less than £100 and Barclays had no issue with them and conveniently started the process over the phone. Yet when my ex tried because of an undelivered item, she was told that the purchase was less than £100 so they won't do it. In fact her bank was initially denying that such a thing as a chargeback even exists. I don't recall which bank it was though.

wealdroam

vtc6 wrote: »

Oh, also the £100 minimum on chargebacks. Is this a bank rule or law? Both the chargebacks I issued were less than £100 and Barclays had no issue with them and conveniently started the process over the phone. Yet when my ex tried because of an undelivered item, she was told that the purchase was less than £100 so they won't do it. In fact her bank was initially denying that such a thing as a chargeback even exists. I don't recall which bank it was though.

There is no £100 minimum for chargebacks.

You are confusing a claim under Section 75 of the Consumer Credit Act, with chargebacks.

MSE has written articles on both of these:
Chargebacks - http://www.moneysavingexpert.com/shopping/visa-mastercard-chargeback
Section 75 - http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases

Here's a small quote from that chargeback article:

It's worth noting most bank staff don't really know about this procedure, so you may need to explain it to them. There's no upper limit to the payouts (Mastercard has a minimum of £10).

vtc6

Great, all clear!