HSBC refusing Visa debit chargeback – looking for advice on their reason for refusing

armicaste

I'm looking for some advice from anyone familiar with Visa debit-card chargebacks, particularly whether HSBC are correct in refusing/closing my chargeback.

I paid On The Beach £6,251.49 for a package holiday using an HSBC Visa debit card. The payments were:

• 18/10/2025 – £120.00
• 14/11/2025 – £772.19
• 13/12/2025 – £772.19
• 02/07/2026 – £4,587.11

The holiday dates were 3–13 August 2026.

There were significant problems with the holiday/accommodation and I made a formal complaint to On The Beach. They rejected my complaint and I subsequently went through the ABTA process. ABTA have also confirmed that they are not changing their position.

I'm seeking £2,295.55 through the chargeback, rather than trying to recover the full £6,251.49.

I contacted HSBC regarding the chargeback and the dispute was raised/re-raised on 29 September 2026. HSBC initially confirmed that the dispute had been raised.

HSBC have now told me that the dispute is being closed because of Visa regulations. They have said that the reason for the closure will be sent to me in writing. I haven't received that written explanation yet.

So at this stage I'm trying to understand whether HSBC's decision is correct, rather than asking whether my underlying complaint against On The Beach is valid.

I've been looking at the Visa rules myself and have found Visa Dispute Condition 13.3 – Not as Described or Defective Merchandise/Services. My understanding is that this may cover disputes concerning services that don't match what was contracted/provided.

I also understand that there is a 120-day time limit, but that for this particular type of dispute the rules may allow the 120 days to run from either the transaction processing date or the date the cardholder received the services, depending on the circumstances. I'm not certain I've interpreted the rules correctly, so I'd particularly appreciate someone knowledgeable checking this.

The dates are what make me question HSBC's decision:

• Final payment: 2 July 2026 – £4,587.11
• Holiday: 3–13 August 2026
• HSBC dispute raised/re-raised: 29 September 2026
• Today: 8 October 2026

If the relevant date were the final payment, 120 days from 2 July 2026 would be around 30 October 2026. If the relevant date were when the holiday/service was received, 120 days from 13 August 2026 would be around 11 December 2026.

So I'm trying to understand:

1. Can HSBC legitimately refuse/close the chargeback because of a Visa time limit in these circumstances?

2. If the 120-day rule applies, which date should the clock actually run from for a dispute concerning the quality/description of a holiday service?

3. Does the fact that HSBC had already raised/re-raised the dispute on 29 September make any difference?

4. Is HSBC required to actually consider/pursue the chargeback based on the evidence, or can they simply decide not to pursue it because they believe it won't succeed?

5. If HSBC's written explanation turns out to be incorrect, would the appropriate next step be a formal complaint to HSBC, followed by the Financial Ombudsman Service if necessary?

I'm not asking whether my underlying complaint against On The Beach is valid at this stage. I'm mainly looking for advice on whether HSBC's refusal/closure of the Visa chargeback appears to be in accordance with the Visa chargeback rules, and what I should do once I receive their written explanation.

If anyone has experience with Visa debit chargebacks, HSBC chargebacks, or Visa Dispute Condition 13.3, I'd really appreciate your thoughts.

Thanks.

la531983

How did you arrive at a 36.72% refund figure?

Isthisforreal99

Why not wait until you have their written reasons instead of asking hypothetical questions on what you think might be a possible reason. It could have zero to do with timings.

Notwithstanding the fact HSBC would be within their rights to contest any chargeback putting you back to square one.

But late now, but use a credit card in future.

born_again

What were the issues, as not everything will fall under a chargeback. If you are looking at a quality issue, then that is very subjective.

Did you stay in the accommodation the whole holiday or did you get moved?

ALL debit card payments & non DD payments?

Not as Described or Defective Merchandise/Services.

You would need some real proof of expected, compared to proof of received, for that on a holiday. Photo's etc.

Partial chargeback? You need to have invoice stating what charged & not received. (Honest opinion) not going to work on a holiday. You can't just magic a figure in your head.

120 days would be from date of holiday. So well within window.

HSBC or any other bank, can refuse any chargeback if it does not meet the criteria for the chargeback. (They get punished if they simply try it on (been there done that, got the slap to prove it)) These are card regulations, with no legal standing. So if Visa say NO, that is the end of it. FOS would only do anything if HSBC have failed in their processes.

Given both OTB & ABTA have rejected your claim. 🤷‍♀️

Woodstok2000

You need to wait for their reasons before anyone can advise. Youre within the 120 days, but they likely have another reason for declining.

The most likely reason is they agree with the OTB/ABTA response.

PHK

Visa issue guidelines about how chargeback codes are to be interpreted.

13.3 would be the right code. But, the hotel or package would need to have deviated significantly from the way it was described AND you must have complained immediately (not after the event) AND you must have acted to mitigate your loss.

If you didn't do these then a claim would fail. For example, if you continued to stay at the hotel/property then the guidelines allow the defence that you accepted the variation in contract. Similarly if you complained after the event.

This is sometimes called the "stay and pay" exception (or stay and pay trap!). If you did stay then I would suspect the merchant defended the claim with ABTA as backup which means there was no prospect of success.

It's worth remembering that chargeback are a scheme run by card providers and not a legal right. They only operate in limited circumstances.

I would wait and see what the reason for not pursuing the claim is.