Chargebacks - A Consumer Protection Weapon
March 24, 2008 – 8:28 pmI’m surprised by the number of people who don’t seem to know what a chargeback is and it’s such a useful tool I thought I’d take a minute just to explain a little more about it.
The reason you need to know about it is that chargebacks provide you, the consumer, with extra protectedion when you buy anything with your credit card.
Essentially, if you buy something with your card and you don’t feel you got what you should have (it broke quickly, it never showed up, your hotel was dirty etc.) and you honestly feel you’ve been had you can ring your credit card company and carry out a chargeback which will basically take the money you spent off the company and put it back on yout card so you’re not out of pocket.
More so, the company will likely be charged upwards of $20 in charges for not providing a good service.
I should mention that the chargeback should be your worst case scenario.
Both the banks themselves and the companies using their merchant accounts don’t take kindly to the use of chargebacks due to the cost implications so I suggest you try other avenues first - ring the compay responsible etc. but as a last resort it’s worth knowing about this useful tip.
One more reason to get yourself a credit card to protect you from fraudsters.
If you’re considering getting a card at all then you might want to check out Credit Cards Guaranteed for a good deal.
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