Who Pays The Chargeback

[Just~me]

Hi everyone.

Can someone explain EXACTLY how a chargeback works and does it only happen when involved with fraud.
or:
If I was in dispute with a company regarding a refund and that company never had any money in their account to refund, how will my bank take the money back (chargeback) if there is no money to take.??

I'm not stupid just a bit ill informed.

Thanks in advance.

Just~Me

[freakyleaky]

Bump!

[barracad]

It wouldn't make a difference.

To try and explain without over-complicating the matter, your card provider gets the money back from the merchant acquirer, so they will get the money back regardless, it is then down to the merchant acquirer to try and get their money back.

It is a common misconception that your card provider pays the retailer directly, in fact this is done by the merchant acquirer (middle-man).

[Just~me]

freakyleaky.

You need to see the doctor regarding that "BUMP" on the back of your head.

Originally Posted by barracad

It wouldn't make a difference.

To try and explain without over-complicating the matter, your card provider gets the money back from the merchant acquirer, so they will get the money back regardless, it is then down to the merchant acquirer to try and get their money back.

It is a common misconception that your card provider pays the retailer directly, in fact this is done by the merchant acquirer (middle-man).

So would the merchant aquirer be someone like...PayPal or Protx.?? if a purchase was done through them. ??
There is a reason that I am asking this question as it has to do with one of my threads thats running at the moment.

Gamesgadgetsuk.com. Have you paid for goods not delivered.??

Just~Me

[barracad]

By "chargeback" I am assuming you are referring to where you have complained directly to your card issuer, and they have reversed the payment.

Sometimes people raise a dispute with Paypal, who refund the payment, and refer to this as a "chargeback" even though that isn't what a chargeback is. You'll have to clarify, what exactly you mean by "chargeback".

[Just~me]

Hi barracad. (stig)

What I was trying to establish is, if you pay for goods online by credit/debit card, and the goods are not sent for whatever reason, where does your money come "back" from, if the company you purchased from has gone bust or it was a fraudulent transaction. ?
Does it come back from your bank/card company or the merchant that authorised the transaction, such as Paypal, protx, etc.
I know that with some cards, insurance is included such as Platinum / gold / cards etc, but only if you pay per month for the privilage. I'm not certain but I have been told that the wording of "Chargeback" only applies to VISA debit cards. Please correct me if I'm wrong as I'm not certain on this one.

Just~Me

[barracad]

Originally Posted by Just~me

What I was trying to establish is, if you pay for goods online by credit/debit card, and the goods are not sent for whatever reason, where does your money come "back" from, if the company you purchased from has gone bust or it was a fraudulent transaction. ?
Does it come back from your bank/card company or the merchant that authorised the transaction, such as Paypal, protx, etc.

Neither. It would come from the merchant acquirer, which is usually a bank - this is different from it coming from your own bank.

e.g. Your credit card is provided by HSBC, you go in to a shop and buy something with your card, the retailer puts the transaction through their credit card terminal. Their merchant acquirer for the credit card terminal may be NatWest.

So you initiate a chargeback, HSBC would refund you and get the funds back from NatWest. NatWest would then pursue the retailer. If they don't get the funds back then NatWest lose out.

It's somewhat complicated, but I'm 99% sure that's how it all works!

[Just~me]

excellent...thanks for that nice bit of info barracad.

Is there a way / register that I can find out who a certain merchant acquirer is on one of my own transactions.??
I'm trying to build a case of complaints from people, to be sent to the acquiring merchant, including a complaint from myself, of a certain bad company,. I'm trying my best to cause as many problems for the bad internet company as I can, legally.

Just~Me

[Gilbert_O'Sullivan]

Originally Posted by barracad

Neither. It would come from the merchant acquirer, which is usually a bank - this is different from it coming from your own bank.

e.g. Your credit card is provided by HSBC, you go in to a shop and buy something with your card, the retailer puts the transaction through their credit card terminal. Their merchant acquirer for the credit card terminal may be NatWest.

So you initiate a chargeback, HSBC would refund you and get the funds back from NatWest. NatWest would then pursue the retailer. If they don't get the funds back then NatWest lose out.

It's somewhat complicated, but I'm 99% sure that's how it all works!

Not from what I understand. The issuer of the card, say HSBC, as you say would bear it as the provider.

And in any case all the big banks pool like insurance do they not?

(Like if a huge corp went bust, such as GM Motors in a few months, then they all bail each other out?)

[MARTIN3030]

Probably a few months ago that would be true Gilbert-but theres been a lot of shifting of goalposts-who was there to bail out Leemans ?