The term “Chargeback on the card” applies to any kind of bank money transfers: replenishment of bank card problem bank, deposit the Forex broker, which turned out to be unreliable, investments in HYIP-project. Investments in any case involve risks as with the trading and non-trading. Speaking of non-trading risks normally mean the likelihood of a Scam of a project, but even the onset of a Scam does not mean full loss of deposit. As practice shows, most of it still has the opportunity to return, provided that the cash transfer was effected through a bank or payment systems Visa or Mastercard.
Important: always try to replenish the deposit through the official payments system. Transfer of money through e-wallets leaves virtually no chance for a refund in the event of a “sudden” bankruptcy or of unjustified refusal in conclusion of money from the account. Also note that the client verification should take place at the time of deposit and not at the time of withdrawal!
A refund is possible in case when service is not provided, when the goods supplied do not match the description, a mistake in the details, a technical failure.
What is a chargeback on the card
The chargeback on the card — the procedure of canceling the transaction for the money transfer through the international payment systems on the basis of accepted international rules. The procedure of the chargeback initiated by the cardholder, the procedure is initiated by the issuing bank.
Alas, the rules of the refund of the deposit are very complex and fraught with all sorts of fines, superimposed on the acquiring banks, service is unreliable (spoof) of the company. In other words, the bank is defendant (the company’s account which collected the money) must first detailed study of the documents of the broker before making a financial transaction. Logically, if the company proved to be unreliable, the bank is also subject to sanctions. On average, chargeback on the card are not satisfied for 20% of initiated claims , a further 70% over only a partial refund of the deposit.
The mechanism of chargeback
In the procedure of the deposit return two sides take part:
- the owner of the Bank card and its issuing bank;
- respondent (company-broker, HYIP) and the acquiring bank.
Restrictions on the initiation of the procedure: the period of the chargeback for Visa — not more than 180 days for Mastercard — 120 days, the maximum period of initiation up to 540 days after deposit. Documents to initiate: the statement of the established sample, the contract on rendering of services, screens and copies of correspondence, chat, mail, Skype, photographs — any document proving the bad faith of the second side.
- code of chargebacks in the payment system Visa — 2430;
- chargeback code in the Mastercard payment system — 4855.
If confirmation of the unreliability of the counterparty convincing, encoding reason is true, the statement has no errors, the issuing bank registers the application and sends it for examination in the offices of payment systems. Those, in turn, after considering the application, transmit it to the bank defendant, which is already dealing with the company in fact of claims. If the chargeback is satisfied, from the account of the defendant the amount is removed forcibly.
Important: in practice, the initiation of the chargeback via the card is possible in case of availability of signed contract(!!!) between the client and the broker and violation of one of its points. In the absence of agreement to initiate the procedure is almost impossible. But there is a caveat: in some cases, an electronic contract, which passed by transfer of money can be considered legally competent.
Step-by-step manual on initiation of the chargeback
Statement on transfer of the money and sample of the application requested by the client from the issuing bank.
Need confirmation from bank acquirer that the money for the disputed transactions are credited to the account.
All brokerage accounts are close, application is made for withdrawal. As soon as terms for money transfer set by the broker expire, you should make screens of personal account with confirmation of failure of the obligations by the broker.
A letter is sent to the broker on cancellation of the contract on the basis of its failure to perform its obligations and ask for your money back. Certainly there should be no response from the broker.
Prepare a set of documents to initiate the refund:
proof of a violation by the broker of its obligations (screens, correspondence, evidence of sending the letter of termination);
In the case of a positive decision the issue is resolved within 30-60 days, but I think you understand now why it is very risky to contact the companies that are registered somewhere in Cyprus and do not have Russia as its representation. As practice shows, every third proponent from the first time is denied, but after repeated submission of documents and complaints to regulators application is re-accepted for consideration, and only 20% of traders remain with nothing.
An illustrative example is a Scam company RVD Markets. The management of the company itself has gone on the offensive, informing the clients about the bankruptcy. Alas, in this case on account of the company is seized and the procedure of chargeback will not work. Attempt to initiate a refund is possible, but the probability of success is minimal.
Summary. The chargeback on the card is the last opportunity to receive money when it seems that hope is gone.
- Transferred money and only then realized that it was the HYIP and not on the broker?
- Can’t withdraw money because of the unreliability of the broker?
- Believe that the broker does not fulfill its obligation to provide services?
Rate risks and loss of time, and if you think it’s worth it — go for it!