how does a chargeback work?

[dba7108]

i bought an ipad the other day, arrived and screen wasnt repsonding. Phoned company up and they said their policy was to refund 2 days max after item ordered. Spoke to credit card company and they said against sale of goods act and refunded me the £400. Had an email off seller other day asking did i want the item returned, i emailed back saying i had involved visa. Got a credit today for £400 from credit card, but still keep getting emails asking if i want this item back.

Who pays for the chargeback the bank? or does the merchant get the £400 taken off them?

[73mark]

The way I understand it is credit card pays you then they try and recover money.
So I'd only deal with your credit card company from hear on out.

[Burrito]

73mark said:

The way I understand it is credit card pays you then they try and recover money.
So I'd only deal with your credit card company from hear on out.

The money is taken immediately from the seller and refunded to your account.

The seller will receive a letter from their card processor to notify them of the chargeback and give them the opportunity to defend it. If they defend and the card processor/card issuer is happy with the reasons then the money is automatically returned to the seller and removed from your account.

If the seller contacts you and offers an amicable solution you could accept it and let your card issuer know to cancel the chargeback.

If not, deal only with your card issuer.

[73mark]

Pretty much what I said.

[ging84]

It is so much more complicated than that, can involve several companies
you may get an instant refund, but the seller may not know about the charge back for days, even weeks, and they may challenge the charge back and win, and the charge will be restored.