Credit card chargebacks
What a credit card chargeback is and when you can apply to have one.
What is a chargeback?
A credit card chargeback is a reversal of a credit card transaction where money that has been paid to a trader is reversed out of the trader’s account. It is then refunded to the consumer’s account. Interest should also be refunded. Chargebacks are also known as reversing a transaction.
Facts about chargebacks
- A chargeback application has to be made within 60 days of the transaction.
- There are limited circumstances for successfully obtaining a chargeback.
- It will also depend on the credit cards terms and conditions, it is best to see that your own credit card’s terms and conditions allow for.
- Generally, the bank should grant a chargeback if your credit card was debited my mistake or fraud. Other reasons for obtaining a chargeback include the wrong goods being delivered or non delivery of goods.
- If you change your mind about a purchase or you suffer from buyer’s remorse, usually this will not be grounds for a chargeback.
For more information see The Code of Banking Practice from the New Zealand Bankers’ Association or telephone 04 802 3358.
Last updated 2 July 2010
