How Far Back Can You Do a Chargeback?

A chargeback is a mechanism allowing consumers to dispute specific charges made to their debit or credit cards. It serves as a consumer protection tool, enabling cardholders to reverse transactions under certain circumstances. This process helps safeguard consumers from fraudulent activity, billing errors, or issues with goods and services received. Initiating a chargeback allows the cardholder’s bank to retrieve funds from the merchant’s bank, providing a recourse when direct resolution with the merchant is unsuccessful.

Understanding Chargeback Timeframes

The ability to initiate a chargeback is subject to various time limits, which can differ based on the card network, the type of card (credit or debit), and the specific reason for the dispute. These timeframes are set to ensure timely resolution of issues while providing a window for consumers to address concerns. Understanding these deadlines is essential for a successful chargeback.

Credit card networks, such as Visa, Mastercard, American Express, and Discover, establish their own rules and timeframes for chargebacks, often varying by reason code. For many types of disputes, including fraud, non-receipt of merchandise, or services not rendered, cardholders have a window of up to 120 days to file a chargeback. This 120-day period commonly begins from the transaction date or the expected delivery date of goods or services.

Visa allows cardholders 120 days from the transaction processing date or expected delivery date for most chargeback reasons like fraud, processing errors, or consumer disputes. For issues like services not provided or merchandise not received, the 120-day clock can start from the expected delivery date, but not exceeding 540 days from the transaction date.

Mastercard provides cardholders with 120 days from the transaction date to file a chargeback for most issues, including transaction amount discrepancies, unauthorized transactions, or goods not as described. The starting point for the 120-day period is the day of the transaction.

American Express allows cardholders 120 days from the transaction date to file a chargeback for most reason codes. For disputes concerning damaged or defective items, the 120-day period begins from the day the item was received. If goods or services were not received, the deadline is 120 days from the expected receipt date or when the consumer became aware of non-receipt.

Discover recommends customers file disputes within 120 days, though it does not impose a strict time limit on cardholders and determines approvals on a case-by-case basis. For most reason codes, the standard timeframe is 120 days from the purchase date. However, Discover may extend this deadline, especially if a retrieval request process extends beyond the 120-day window.

Federal regulations also play a role in chargeback timeframes, particularly the Fair Credit Billing Act (FCBA) for credit cards and the Electronic Fund Transfer Act (EFTA) for debit cards. The FCBA protects consumers from “billing errors” on credit card statements. Under the FCBA, a consumer must send written notification of a billing error to the creditor within 60 days after the first bill containing the error was mailed. The FCBA covers errors like unauthorized charges, incorrect amounts, or charges for goods not received as agreed.

For debit card transactions, the Electronic Fund Transfer Act (EFTA) provides protections, primarily for unauthorized transfers. If an unauthorized transaction appears on a bank statement, the consumer has 60 days from the statement date to report it to limit their liability. Reporting within two business days of learning of the loss or theft of an access device can limit liability to $50. If reported after two business days but within 60 days of the statement, liability can increase, and failure to report within 60 days can result in unlimited liability for subsequent unauthorized transfers.

While federal laws and card network rules set baseline timeframes, individual issuing banks may offer more lenient policies as part of their customer service. These extended periods are not guaranteed and can vary from one bank to another.

Preparing for a Chargeback Request

Before initiating a formal chargeback request with your bank, it is advisable to attempt resolving the issue directly with the merchant. This initial step can often lead to a quicker resolution without involving third parties. When communicating with the merchant, it is important to record details such as the dates and times of calls, the names of individuals spoken to, and a summary of the discussions and their outcomes.

Gathering comprehensive evidence is an important step in preparing for a chargeback. This documentation substantiates your claim and increases the likelihood of a successful dispute. Essential items to collect include transaction details, such as the date, amount, and merchant name, which can be found on your statement or receipt. You should also secure order confirmations, receipts, and any contracts or agreements related to the purchase.

Supporting evidence can vary depending on the nature of the dispute. For example, if a product was damaged, photographs of the damage are valuable. If goods were never received, proof of attempted delivery or non-delivery from tracking information can be useful. Any communication records with the merchant, including emails, chat logs, or notes from phone calls, are important as they demonstrate your attempts at resolution.

Understanding the specific reason for your dispute is important, as this will guide the evidence you need to provide. Common reasons include unauthorized transactions, where you did not make the purchase; services not rendered, such as an event canceled without a refund; merchandise not received; or a product being defective or significantly not as described. A clear understanding of your claim helps articulate the issue to your bank and aligns with the appropriate chargeback reason codes.

Submitting a Chargeback Request

Once all necessary information and supporting documentation have been gathered, the next step involves formally submitting your chargeback request to your card-issuing bank. There are several common methods for contacting your bank to initiate this process. You can call the customer service number provided on the back of your card, access an online banking portal that offers a dispute resolution feature, or visit a local branch in person. In some cases, a written dispute may need to be mailed to a specific address designated for billing inquiries.

When you contact your bank, be prepared to provide all the details and evidence you have collected. This includes stating the transaction date, the amount of the disputed charge, the merchant’s name, and a description of the issue. If using an online portal, you will be prompted to upload digital copies of your supporting documents, such as receipts, order confirmations, and communication records with the merchant. For mailed submissions, it is advisable to send copies of your evidence, retaining the originals for your records.

After submission, your bank will begin an investigation into your claim. During this period, the bank may temporarily credit the disputed amount to your account, known as provisional credit. The bank will contact the merchant’s bank, which then gives the merchant an opportunity to respond to the chargeback. The merchant may provide their own evidence to dispute your claim.

It is important to monitor the status of your chargeback claim. Keep a record of all communications with your bank, including dates, names of representatives, and any reference numbers provided for your dispute. If additional information is requested by the bank, respond to avoid delays or the closure of your case. The overall process, from initial submission to final resolution, can take several weeks or even months, depending on the complexity of the dispute and the responsiveness of all parties involved.