Do chargebacks affect your credit rating?

[Kaitlyn]

As the title states... if you do a charge back through your CC... does it affect your credit rating? Does it matter whether you get the funds or not?

[MadCow]

It does not have a direct impact on your credit score. Chargebacks are a service provided by the bank that issued your credit card, and wouldn't have be reported to credit bureaus or anything like that.

[excel]

if a store refuses to accept a return for an item, can a chargeback be done with the credit card company?

[vickyvictoria]

As the title states... if you do a charge back through your CC... does it affect your credit rating? Does it matter whether you get the funds or not?

from a cc cheque? - they could charge you fees for exceeding your c/c limit but allow the chq to clear if not, if this is a recurring thing, they make take away chq writing privilages

or from a personal bank account cheque as payment to your c/c? - it would be considered a missed/late payment if you can't make it up by the due date, 30days overdue - rated as R2, 60days - R3, 90days+ -R4, R5 - collections or possible write-off pending...

[Kaitlyn]

from a cc cheque? - they could charge you fees for exceeding your c/c limit but allow the chq to clear if not, if this is a recurring thing, they make take away chq writing privilages

or from a personal bank account cheque as payment to your c/c? - it would be considered a missed/late payment if you can't make it up by the due date, 30days overdue - rated as R2, 60days - R3, 90days+ -R4, R5 - collections or possible write-off pending...


Umm... thanks, but no no and no. I meant if I purchase something at a store and do a charge back on it later

[vickyvictoria]

Umm... thanks, but no no and no. I meant if I purchase something at a store and do a charge back on it later

a return?
- no it won't affect your credit score... but depending on your statment dates, you may have to pay first before the credit is posted...

For FI's - "charge-backs" - refer to deposits returned due to non-sufficient funds so for the cheque writer it's considered NSF and for the payee it's a chargeback

[Sash[DSL]]

For FI's - "charge-backs" - refer to deposits returned due to non-sufficient funds so for the cheque writer it's considered NSF and for the payee it's a chargeback

I don't think this has anything to do with what she was asking about. The chargeback she was referring to is a service provided by CREDIT CARD ISSUERS to retailiate against a merchant for whatever reason. For instance if the store sold you something defective and refused to take it back.


Kaitlyn,
Chargebacks do not affect your rating but before you go ahead with it remember that it pretty much a lawsuit against the merchant, only it is solely handled by the credit card company. Doing a chargeback for unlegitimate reasons is much like reporting someone threatening you to the police when no one is. Theoretically you can be liable for a fraudelent chargeback, realistically if the amount is low the credit card company will simply write it off and refund you your money.

[CheapScotsman]

Okay I rewrote this ....cause I thought of something else

If you bought in person ...

Its pretty tough (probably almost impossible) to do a chargeback if you actually signed the receipt AND left with the goods. If you did receive the goods and are just trying to get your money back then its actually fraud. Don't forget that almost every store will have video so ...

if you want your money back, go back and get a refund first. If that doesn't work, then TALK to your credit card issues about the situation BEFORE you demand a chargeback


If you bought online ...

Buying online is different cause you didn't sign anything.... a chargeback is not a good thing for the merchant. Most merchants SHOULD work to resolve any issues you have given that it costs them even more money if they suffer a chargeback (penalties, etc)

So, unless you have a grudge or want to thrash the merchant, given them a call, explain the situation, tell them that you want a refund or you will do a chargeback and let them respond.


Both cases ...

You usually have to report "issues" within 30 days or so once the charge appears on your credit card statement (see the your statement for details). Note, also, that some retailers can "blacklist" you from shopping with them if you issue a chargeback against them.

[vickyvictoria]

ok, good to know.

but if you have received the product purchased in person or online or if you have received the services as agreed (travel etc) but you hare not satisfied with your purchase... and you request a chargeback/hold on pymt with the c/c company.... while you work this out with the merchant...depending on how long it takes... who pays the interest accrued? or is there no interest b/c the funds have been held back? so essentially the c/c company is your buffer to start any legal proceedings against a merchant?

:confused: