How to Make a Chargeback Claim When a Purchase Goes Wrong

When you pay for goods or services with a debit, credit or prepaid card in England and Wales and something goes wrong – such as the item never arriving, being faulty, or the seller refusing a refund – you may be able to recover your money through a chargeback claim. A chargeback is not a statutory legal right; rather, it is a voluntary dispute‑resolution mechanism operated under rules set by card schemes such as Visa, Mastercard and American Express. This article explains what chargeback is, when it can be used, how to make a claim step by step, important time limits, and what to do if a claim is rejected. The guide is written in clear language for consumers, students, and solicitors seeking accurate, practical information.

What Is a Chargeback?

A chargeback is a process that allows cardholders to request that their bank or card issuer reverse a card transaction and recover funds when there is a legitimate dispute about a purchase. It applies to:

• Debit cards, including Visa Debit, Mastercard Debit and similar.
• Credit cards where Section 75 of the Consumer Credit Act 1974 does not apply or is not available.
• Prepaid cards where the card scheme allows it.

The chargeback scheme is part of the contractual relationship between card issuers and card networks. It is not grounded in UK statute, but banks and card providers participating in the Visa, Mastercard or American Express schemes generally offer this facility as part of consumer protections associated with card payments.

When Can You Use Chargeback?

You may be able to make a chargeback claim if:

• Goods or services never arrived.
• Goods are damaged, faulty, or not as described.
• You were charged multiple times or for the wrong amount.
• A company has ceased trading and cannot offer a refund.
• The card transaction was unauthorised or fraudulent.

Before raising a chargeback claim, you should attempt to resolve the issue with the merchant where possible. Many providers and card schemes expect you to allow the seller an opportunity to address the problem before initiating a chargeback.

Step‑by‑Step: Making a Chargeback Claim

Step 1: Gather Evidence and Details

Collect all relevant documentation before contacting your bank or card issuer. Useful documents and information include:

• Transaction date, amount and retailer name.
• Order confirmations, receipts, delivery tracking or service booking references.
• Records of communication with the seller (emails, messages).
• Clear explanation of what went wrong (non‑delivery, faulty goods, etc.).

Keeping organised evidence helps strengthen your chargeback claim and assists the bank's investigation.

Step 2: Contact Your Bank or Card Provider

You should contact your bank or card provider as soon as you identify the issue. Most providers allow you to make a chargeback claim:

• By phone.
• Through online or mobile banking.
• By visiting a branch or submitting forms.
• By email or postal correspondence.

When making the claim, clearly state that you want to raise a chargeback request and provide the details and evidence you have gathered.

Step 3: Bank Investigation

Once your card provider receives your claim, they will:

• Investigate the claim under the relevant card scheme rules.
• Attempt to reclaim the funds from the retailer's bank by reversing the transaction.
• Credit the disputed amount back to your account, sometimes provisionally pending final determination.

Some banks issue a credit before the merchant's bank responds; this credit may be reversed if the chargeback is ultimately declined.

Step 4: Merchant Response

The retailer's bank may accept or dispute the chargeback. If the merchant provides compelling evidence that they fulfilled their obligations (for example, delivered as agreed), the bank or card network may deny the chargeback.

If the merchant disputes the claim, your bank will consider both sides and make a decision in line with card scheme rules.

Time Limits and Practical Criteria

Time Limits

The deadline for raising a chargeback claim is generally within 120 days of the original transaction date or when you were due to receive the goods or services. For example:

• With online purchases, the clock often starts on the delivery date if that is later than the transaction date.
• For services like event tickets, it may start from the event date.

Each bank and card scheme may have slight variations to these periods, so contacting your provider early is essential.

Evidence and Detail Required

To make a successful chargeback claim, provide clear information such as:

• The name of the retailer or merchant.
• When and how the payment was made.
• Full description of the goods or services and what went wrong.
• Proof of attempts to resolve matters with the seller.
• Receipts, order confirmations, and tracking or booking references.

Strong documentation increases the likelihood that your card provider will succeed in reversing the payment.

What Happens Next and Time to Refund

Once submitted, the chargeback process duration varies depending on provider and the nature of the dispute. Some banks may:

• Credit your account within days, but the amount is provisional until final confirmation.
• Inform you of a timeframe for a final decision, which typically runs into several weeks.
• Advise what will happen if the merchant disputes the claim.

If the claim is declared unsuccessful, your card issuer should explain the reasons and provide information on how to appeal or escalate.

What If Your Chargeback Claim Is Refused?

Complaint and Escalation

If your chargeback claim is refused and you believe this is unfair:

• Complain to your bank or card provider formally.
• If the provider's final response does not resolve the dispute within eight weeks or you receive a formal “deadlock” response, you can escalate the matter to the Financial Ombudsman Service.

The Ombudsman can independently review the situation and decide whether the bank acted fairly according to the scheme rules and relevant consumer protections.

Scenarios Where Chargeback May Not Apply

Chargeback will generally not be available where:

• The payment was made in cash or by bank transfer.
• You paid via third‑party payment platforms such as PayPal directly, unless the scheme treats it as a card transaction.
• The time limit for submitting the claim has passed.
• The provider is not a member of a card scheme that supports chargeback.

In such cases, other consumer protections like Section 75 of the Consumer Credit Act 1974 may offer alternative rights if applicable (for example, for credit card purchases between £100 and £30,000).

Key Takeaways

• Chargeback enables you to ask your bank or card provider to reverse a payment when goods or services have not been delivered, are faulty, or if the merchant will not refund you.
• It applies to credit, debit and prepaid cards under voluntary card scheme rules.
• You should contact your provider as soon as possible, usually within 120 days of the payment or expected delivery date.
• Provide clear documentary evidence and a detailed explanation of the problem.
• If your chargeback is refused, you can complain to your provider and escalate to the Financial Ombudsman Service if unresolved.
• Chargeback complements but is distinct from statutory protections such as Section 75 for relevant credit card transactions.