Chargeback

A chargeback is a forced reversal of a credit card transaction where your issuing bank credits your account after you dispute a charge, and then recovers the amount from the merchant’s bank. You can raise a chargeback within 120 days of the statement date on which the transaction appeared for reasons covered by the card network — the most common being fraud (unauthorized transaction), non-delivery of goods or services, merchandise not as described, or a credit not processed when a return was made. To initiate a chargeback, you call your bank’s customer care or use the mobile app to raise a dispute, providing a reason code and supporting documents such as delivery confirmation, communication with the merchant, or a police report for fraud. The bank then files the dispute with the card network (Visa or Mastercard), which arbitrates between the issuing and acquiring banks. During the dispute period, the contested amount may be temporarily debited from your account. If the dispute is resolved in your favour, the credit is permanent; if it goes against you, the amount is re-debited. Chargebacks carry a fee of ₹250 to ₹750 per dispute depending on the bank, usually refunded if the dispute is upheld.