Chargeback Process

ghazghaz

I have requested a chargeback for a service not provided, where the other party would only issue a credit note.
The CC has refunded my account but the counter party has 45 days to contest the chargeback.
What happens if they contest the chargeback? Is there a process for arbitration? 

If chargeback fails, can you still start a S75 claim?

[Deleted User]

If they contest it, the bank gives the money back to the supplier
You can try an S75 yes but while the lender is jointly liable, you'll need to explain why there was a breach of contract - what service was not provided? Why can't they provide it? What was the reason a credit was offered not a refund? You'll need to explain that for the S75 to go ahead.
You'll get pushback as you've been offered a resolution and rather than complain to the firm and go through their process (and any ombudsman, if applicable), you've tried to bypass that by asking the bank for the money back directly. Expect the firm to demand the money back from you and you'll then be back where you were and need to complain to the firm for a refund.

eskbanker

Is this the back story perhaps?

https://forums.moneysavingexpert.com/discussion/6224900/refund-for-hotel-in-prague-booked-direct

[Deleted User]

If it's the hotel one, then why didn't you claim on your travel insurance?

Sandtree

Effectively the banks act as arbitrator. Their decision is by no means binding nor sets any precedent so if your claim is successful and the banks side with you that doesnt stop the merchant from successfully suing you for the value, interest and costs for what effectively becomes non-payment.

MEM62

Deleted_User said:

If it's the hotel one, then why didn't you claim on your travel insurance?

This topic was raised in the original post but the OP did not comment on it which leads me to suspect that the OP was not prudent enough to have travel insurance.  

[Deleted User]

MEM62 said:

Deleted_User said:

If it's the hotel one, then why didn't you claim on your travel insurance?

This topic was raised in the original post but the OP did not comment on it which leads me to suspect that the OP was not prudent enough to have travel insurance.  

I know full well OP won't have travel insurance, but it's worth an ask anyway in case they forgot. Rather than have a proper confrontation about it, using chargeback just smacks of trying to avoid a difficult conversation. Hotel will get the money back and then OP will need to go back to them and have the conversation they should have had the first time

born_again

Sandtree said:

Effectively the banks act as arbitrator. Their decision is by no means binding nor sets any precedent so if your claim is successful and the banks side with you that doesnt stop the merchant from successfully suing you for the value, interest and costs for what effectively becomes non-payment.

Chargeback process.
Bank of person who did not get service contests and claims money back for providers bank. They then contact provider. If provider does not contest then it is won by default (but retailer can still chase for funds via other means). If they contest, their bank contacts other bank with reason. 
If they feel it is not a good enough reason, it can be contested (pre arbitration) and Visa/mastercard will make the judgement that is binding on both parties.
So banks have no part in the decision making process. They just action as requested by either party.

If it is as per the link and the hotel issue. Then without knowing the actual date of the booking it's hard to say anything. As OP seems to be very sparing with any actual information.

Sandtree

born_again said:
 it can be contested (pre arbitration) and Visa/mastercard will make the judgement that is binding on both parties.

So banks have no part in the decision making process. They just action as requested by either party.

Certainly not true to say they have no part; for one they decide if they will allow you to submit a chargeback in the first instance. I know I've had to argue in the past to get a bank to raise a chargeback.

Visa Europe and Mastercard used to be cooperatives of the banks and hence the "effectively" aspect of my statement... they may not have looked at the individual cases themselves but they created the organisations and governance that did. However I hadn't realised that Mastercard did an IPO nor that Visa Europe was subsumed into Visa Inc and so the statement is incorrect these days  

ghazghaz

I thought i would post an update.
45 days have passed since my credit card company acknowledged my request for chargeback. The hotel has not objected during that time so i have my moneyback
I would just like to say to farfetch and MEM62 these forums are for members to help each other, so please, stop acting like trolls 

eskbanker

ghazghaz said:

I thought i would post an update.
45 days have passed since my credit card company acknowledged my request for chargeback. The hotel has not objected during that time so i have my moneyback

Perhaps worth noting that there have been a number of posts where chargebacks have been reversed long after the 45 days are up, so this isn't quite as final as you might think:
https://forums.moneysavingexpert.com/discussion/comment/77941454#Comment_77941454
https://forums.moneysavingexpert.com/discussion/6220936/loveholidays-chargeback-with-mastercard
https://forums.moneysavingexpert.com/discussion/6216062/chargeback-clawed-back-4-months-later

And even if the hotel fails to challenge the chargeback, that doesn't prevent them from taking action against you at a later date if they feel they have the law on their side, although it's obviously harder and more expensive for them to do that than simply disputing when raised via the card companies....