Chargeback

A chargeback is a card refund made through your bank when you dispute a payment: goods never arrived, you were overcharged or you did not make it. It is decided under card network rules.

How it works

You file a claim with the bank that issued your card and give the reason. Following the card network's rules, your bank claims the money back from the merchant's bank, and the merchant can contest it with evidence. The process can take from a few weeks to a few months, and there is a deadline to file, often around 120 days, depending on the network and the reason.

A chargeback is the last step, not the first. You are usually expected to try to resolve it with the merchant first. The bank looks at evidence: messages, tracking numbers, the refund policy, and whether the payment was approved with 3-D Secure.

Crypto adds an important imbalance. A blockchain transfer cannot be reversed, but a card payment can be disputed. Scammers exploit this in P2P trades: they pay by card or transfer, receive the crypto, then file a dispute. And if you dispute your own genuine card purchase of crypto, the service may close your account.

Example with numbers

You paid $250 by card for headphones, and for a month the shop neither replies nor ships. You file a chargeback with the receipt and your messages. The bank gives you a provisional $250 credit, the shop sends no tracking number, and a few weeks later the refund becomes final.

Common mistake

A common mistake by P2P crypto sellers is accepting a payment the buyer can reverse and releasing coins right away. Once the crypto is sent you will not get it back, while the card payment can still be disputed. Accept only irreversible payment methods, check that the money came from the account holder's name, and use the platform's escrow.

Questions and answers

What is a chargeback in simple terms?

It is when your bank takes money back from a merchant and returns it to you, because you showed the payment was wrong or the goods never came.

Can I do a chargeback on a crypto purchase?

You can file one, but if the purchase was yours and you received the crypto, the odds are low and the service may ban your account. Chargebacks are for fraud and undelivered services, not for regretting a trade.

Can I get back crypto I sent to a scammer?

The blockchain transfer itself cannot be reversed. If you bought that crypto by card from the scammer, you may be able to dispute the card payment, so contact your bank and the police right away.

Chargeback

How it works

Questions and answers

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