Many people nowadays make payments for goods and services using their credit cards online or offline. Sometimes after making a payment, you might have to cancel your order or transaction because of some reason. When you cancel, your credit card issuer might reverse your payment.
Some of the ways in which people can receive reversal of credit card payments are as follows:
Online Refunds – Today many people use their credit cards to make purchases online. When you make online payment for a product and then cancel your order, you may get a refund of the full payment. Before purchasing you should read the returns and refunds policy of the merchant you are making the payment to. Every merchant has their own refunds policy for cancelled orders. There are some websites that do not provide refunds, some have conditions on refunds, some provide points as refunds instead of cash and there are some websites that provide the full refund for a product without asking for a reason.
Double Swipe – Sometimes when you swipe your credit card at a store and receive a SMS saying you have been charged, but the machine does not provide a charge slip, then the store owner may ask you to swipe your card again. In such cases, you end up paying twice for a product because of a glitch in the machine. If you report such incidents to the bank, then your bank will forward details about the same to the merchant and ask them to accept the reversal request.
Cancellation of Purchases – Credit cardholders have the option of cancelling any transaction that they have made using their card online or at physical stores. Cardholders can either cancel the transaction directly or demand a chargeback. For direct cancellation, cardholders have to cancel the order and the payment will be reversed in their bank account within 30 minutes. Chargeback is a way through which cardholders can cancel their purchase if they are not satisfied with the service or product they bought. In this case, the bans will reverse the amount to the credit card and will not pay it to the merchant. Customers have to place chargeback requests within a period of 180 days, starting from the date of purchase.
If a credit card company or online merchant does not respond after promising reversal of funds, then customers can approach the consumer court. In India, the Consumer Protection Act provides protection all customers. If a merchant does not provide refunds, consumers can approach the district forum court. Generally, merchants try their best to solve the problems of their customers to avoid any kind of negative publicity.