Compensation through chargeback

Updated: 8/16/2016

If a trader will not pay back the money that you have paid for the product or service, your bank may help you in many cases. This is regulated in directive 2008/48/EC on credit agreements for consumers.

Keep in mind

  • Always try to solve the problem with the trader first.
  • Save all documentation. Attach all documentation in the message to the bank, as proof of what has happened and of what you have the right to.
  • Contact the bank in writing and explain the problem. Let the bank know that you have tried to solve the problem on your own, but have not been successful.
  • Consider the time limits. There might be time limits that limit the banks opportunities to help you.

Complain to the trader first

Before claiming chargeback from the lending bank/creditor, you must first complain to the trader. If you get a negative response or no response at all from the trader, you can turn to the bank. Do not forget to keep copies of your conversation with the trader, in order to be able to present complete documentation to the bank. 

In which cases are you entitled to chargeback?

You may be entitled to get chargeback if you have a monetary claim against the trader:

  • If you have correctly exercised your right of withdrawal without having received a refund
  • The goods you have paid for are not delivered or only partially delivered
  • If the goods are not in conformity with the order and you have the right to have the contract rescinded.
  • In case of the traders bankruptcy

Credit card is a precondition

In order to receive chargeback it is a requirement that you have paid with a credit card. The rules doesn’t apply if you have transferred the money with a bank transaction or paid otherwise.

Report from the ECC-Net

In 2014 a report on chargeback from the ECC-Net was published. The report is called Charge Back in the EU / EEA – A solution to get your money back when a trader does not respect your consumer rights.