A chargeback is one of the most powerful tools available to fraud victims but it is widely misunderstood. Many people either don't know they have this right, or they wait too long and miss the deadline. This guide explains exactly what a chargeback is, when it applies, and how to submit one effectively.
What Is a Chargeback?
A chargeback is a reversal of a card payment initiated by your bank or card issuer. It was originally designed to protect consumers from merchants who fail to deliver goods or services as described but it applies equally to fraud and scam situations.
When you file a chargeback, your bank contacts the merchant's bank (the "acquiring bank") and requests the funds be returned. The merchant has the right to contest the chargeback by providing evidence. Your bank then rules in favour of one party.
✅ Chargebacks apply to debit cards and credit cards. They do not apply to bank transfers, cash, cryptocurrency payments, or gift card payments which is why scammers prefer these methods.
Credit Cards vs. Debit Cards
In the UK, credit card purchases over �100 are additionally protected by Section 75 of the Consumer Credit Act 1974. This makes the credit card company jointly liable for fraud alongside the merchant a stronger protection than a standard chargeback. Always raise a Section 75 claim alongside a chargeback if you paid by credit card.
Debit card chargebacks operate through Visa's or Mastercard's own dispute schemes (Visa Dispute Resolution and Mastercard Chargeback). These are contract-based rights rather than legal rights, but banks are generally cooperative with genuine fraud claims.
How Long Do You Have to File?
Time limits vary by card network and reason code, but as a general rule:
- Visa: 120 days from the transaction date (or from when you became aware the service would not be provided)
- Mastercard: 120 days from the transaction date
- American Express: varies, but generally 60�120 days
- Section 75 (UK credit cards): 6 years under the Limitation Act
Do not wait. Contact your bank as soon as you realise you have been scammed. The sooner you act, the higher your chances of success.
What You Need to Submit a Chargeback Claim
Preparation is the difference between a successful and a failed chargeback. Gather the following before calling your bank:
- Exact transaction dates and amounts from your statement
- The merchant name shown on the transaction
- Screenshots of the scammer's website, communications, and any contracts or agreements
- Evidence that the service was not provided or that fraud occurred (emails, messages, screenshots)
- Your crime reference number if you have reported to police (Action Fraud, IC3, etc.)
- A clear written timeline of what happened
Your bank may ask you to complete a written dispute form. Provide as much detail as possible and attach your evidence. Banks are more likely to approve well-documented claims.
What If the Chargeback Is Rejected?
If your bank rejects your chargeback claim, you have several options:
- Escalate internally: Ask to speak with the bank's fraud or disputes team rather than the general customer service line
- File a complaint: Submit a formal complaint to the bank. In the UK, if unresolved within 8 weeks, you can escalate to the Financial Ombudsman Service which has authority to overturn bank decisions
- Authorised Push Payment (APP) fraud claims: For bank transfers (not card payments), UK banks are now required under the PSR 2024 mandatory reimbursement rules to assess APP fraud claims and reimburse victims in most cases up to �85,000
- Regulatory complaint: File a complaint with the FCA (UK), ACPR (France), BaFin (Germany), or your national financial regulator
When Does a Chargeback Not Apply?
Chargebacks are not available for:
- Direct bank transfers (though APP fraud rules may apply in the UK)
- Cryptocurrency payments made from your own wallet
- Cash payments
- Gift card or voucher payments
- Transactions made more than 120 days ago (for most card networks)
If your payment method does not qualify for a chargeback, blockchain forensics and regulatory complaints may still be viable recovery routes. Contact us for a free case assessment.