Our Banking Experience​

Banks and Credit Cards

What is a bank chargeback? What is the bank’s role in the chargeback process?

A bank chargeback is the retroactive cancellation and refund of a charge made on a credit card or debit card. Chargebacks are credit card banking protection. They provide cardholders with a recourse in the event they are charged for goods or services that are not provided as ordered. The importance of the bank’s role in the chargeback process cannot be overstated.

The bank chargeback process begins when a bank chargeback request is submitted to the card issuing bank, also known simply as the issuing bank. The issuing bank’s dispute department will first check to be sure that the credit card chargeback time limit has not yet been reached. If not, it will then have to determine whether or not the reason code cited by the cardholder is appropriate. This requires careful study and up-to-date knowledge of  the chargeback guidelines published by the relevant credit card network, as well as local laws that would also be relevant to the case. 

If the issuing bank is convinced that the chargeback request has merit, it will then send it to the merchant’s bank, also known as the acquiring bank. Merchant banks alert the merchants, who have the opportunity to submit responses, known in the banking industry as representments. In the bank chargeback process, representments are credit card banking protection for merchants. Cardholders have the opportunity to respond to them. The issuing bank and merchant bank then must agree, on the basis of the arguments proffered, to approve the chargeback. 

What Happens When the Issuing Bank and Merchant Bank Do Not Agree? 

Without outside assistance, a bank chargeback is impossible if the issuing bank and merchant bank do not agree. This is where MyChargeBack can provide a critical advantage. We know how to speak with bankers using the professional jargon they use. We know the reason codes and chargeback guidelines. And we know banks and credit cards. So, at this juncture, we join our clients on conference calls with the banks to explain the reasons why the chargeback should be approved, citing chapter and verse to justify our position.   

Chargebacks may otherwise be rejected for a variety of reasons. Chargeback guidelines are updated as often as several times a year, so bank staff may be unfamiliar with recent changes.  Some issuing banks, overwhelmed by the tide of card-not-present disputes that resulted from the rise of e-commerce, especially during the COVID pandemic, farm out responsibilities to contract employees who have never attended any professional chargeback training course.  Extraneous subjective criteria may influence their decisions. Nuances can lose a case. Winning it requires a fluency with the rules. 

Beyond the Issuing Bank and Merchant Bank

The types of complex transaction disputes that lead consumers to Rapidcoin typically require the intervention of the issuing bank, the merchant bank, a credit card or debit card issuer, a payment processor, and/or a credit union or some other financial institution. In certain instances, a financial services ombudsman, regulator, law enforcement authorities, or even a court must become involved as well. While none of these actors is familiar with the consumer’s case at the start, all of them can play a critical part in the process of resolving it. 

The successful resolution of card-not-present disputes requires experienced talent capable of multitasking. Contact has to be initiated and maintained with multiple actors. Different sets of documents may have to be submitted to all of them. Other documents that they generate may require responses. The details of the transaction in question have to be explained to each party independently, as succinctly and articulately as possible.  That, in turn, is complicated by the fact that what is of critical import for one party may not be for another. 

Of course, what applies to chargeback requests is not necessarily relevant to other types of disputes. There is no credit card chargeback protection for bank transfers. And since there are no chargebacks on bank transfers, entirely different strategies must be employed. 

Bank Ombudsmen and Financial Regulators

The same is true if the bank’s decision has to be appealed to a bank ombudsman or financial regulator. They will want to investigate whether the bank followed proper procedure in reaching its decision. The appellant will have to prove that they did.

Cryptocurrency Investigations

Needless to say, the police and court system, which are the ultimate addresses for pursuing a cryptocurrency dispute, will have to be convinced that a violation of law has been committed. Rapidcoin has the technology and proprietary databases to compile the evidence police need. 

Having Rapidcoin at your side throughout this complicated undertaking is your assurance that your case will be handled as professionally as possible. We have amassed a wealth of knowledge and experience by engaging with over 800 banks, payment processors, credit card networks, ombudsmen, and financial regulators worldwide. Moreover, the investigative reports we prepare for our cryptocurrency clients have been indispensable in convincing more than 450 law enforcement agencies around the globe to open criminal investigations. At Rapidcoin, we are proud to have recovered millions of dollars for our deserving clients.