Does the business still keep the payment (the transaction was already done) and just a flag or mark on their record by the credit card company. Does anything get flagged on our credit report? We have had some very bad luck with a photographer we worked with and considering this an option.
2006-10-25 03:25:00 · 4 answers · asked by dankloep 2 in Business & Finance ➔ Small Business
If you -- the customer -- complained to your credit card holder that you did not receive the items or services ordered and cancelled the transaction, the merchant will be slapped with what is called a chargeback.
Credit card processing are done through merchant account providers. When a chargeback is filed, the merchant account provider (usually a bank) takes out from the account of the seller the amount paid by the customer PLUS a chargeback fee (typically $20 per transaction). If the seller has a lot of chargebacks, however the merchant account provider defines the percentage, the merchant account will be closed.
If you're a seller, it is not fun to get chargeback notices because sellers have no recourse. Even if the customer is lying and the product is sent (with confirmation of delivery and all), once a dispute is filed, the seller will be chargebacked.
Your credit card may say the item is still in dispute, but in my experience, the merchant account provider doesn't even contact the seller that someone is disputing a charge -- a chargeback is immediately taken from the seller. It just takes time for the credit card company to put the money back to the customer but once you file a chargeback, the bank account of the seller is already debited.
2006-10-25 03:30:53 · answer #1 · answered by imisidro 7 · 0⤊ 0⤋
You can't just decide to cancel the credit card payment. You can however, file a dispute. The credit card company will on your behalf file a dispute and investigate the matter while the payment will be on hold. You have to have a reasonable claim to have the payment reversed. Just that you are not happy with the photo won't do unless they gave you 100% money back guarantee or something. There is no negative mark on your record even if you don't succeed.
2016-03-28 07:10:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It becomes a disputed item. The credit card company will contact him or her to resolve the dispute. Just because you had a bad experience does not indicate he did not do the job. In which case you will pay. But you can report his company and services to the BBB in your area and he will have a bad mark place just in case some one ever checks. Nothing is reported to your credit file.
2006-10-25 03:31:36 · answer #3 · answered by golferwhoworks 7 · 0⤊ 0⤋
They will typically temporarily refund the charge (if any) and then contact the merchant who made the charge. If the merchant can provide proof that you owe them the money, they will ask you to provide proof that you don't. If you can't provide this proof, they will add the charge back on your card.
2006-10-25 03:33:53 · answer #4 · answered by kingofthevoid 2 · 0⤊ 0⤋