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It's more complicated. In theory, you should not be able to chargeback any transaction at will, you need to provide a reason for it. But because US banking is s
by reisse 3y ago
It's more complicated. In theory, you should not be able to chargeback any transaction at will, you need to provide a reason for it. But because US banking is stuck in between of 90s and 00s, to pay with the card online it's enough to know what's printed on the one side of it, maybe two sides. Therefore, "fraud" can always be used as a chargeback reason ("Oh, it wasn't me, someone taken a photo of my card! I definitely didn't pay 300$ on that hot mums nearby website!").
In some parts of the world this is solved by mandatory 2FA authenticaton for online payments (3DSecure and similar tech). If the transaction is verified by 3DSecure or some other 2FA, you cannot chargeback because of "fraud", but you still can chargeback for any other verifiable reason (e. g. goods not delivered).
- gambiting 3y agoTo add to that - it's crazy(but also kinda cool?) that in US you can request an instant chargeback and the bank just does it no questions asked. I tried a chargeback on my British Credit card recently because the goods I ordered were never delivered, but it still took 60 days for the claim to be processed .
- addandsubtract 3y agoI even had a back and forth to get my chargeback accepted. The product I ordered was broken on arrival and return shipping was like 40% of the product, so not worth it. After initially accepting my chargeback, the merchant somehow reopened the case and I had to state my claim again. It really is crazy how easy chargebacks are in the US in comparison.