With a never-ending pandemic looming over the world, customers are becoming more reserved about using paper money and have started depending more on card payments. Debit and credit cards have become the most commonly used and accepted modes of payment and are being used more often than before. When purchases are being made using the cards, there are occasions when cancellations are done too. How does credit card payment reversal work? Let’s find that out.

What Are Some Common Cases For A Credit Card Payment Reversal? 

  • Unauthorized transactions - Any transactions that were not initiated or authorized by you or another cardholder may result in payment reversal.
  • Inconsistencies like items on your statement that do not match the item quantities on your receipt. 
  • Refunds or credits that have not been processed or were handled incorrectly as debits.
  • Faulty or defective goods - You might have paid for products but did not receive them, or they may be delivered faulty or defective. In such cases, the credit card payment must be reversed.
  • A transaction that you believe was made fraudulently.
  • Transactions that were charged to your account more than once by accident.
  • Cancelled auto-payments - An automatic payment that has been cancelled is still being deducted.
  • Services that have not been given are known as unfulfilled services.
  • Charges for a reservation you made but didn't cancel within the cancellation period.

How Can I Get A Charge Reversal On My Credit Card? 

There are many ways to get a credit reversal on your credit card - 

Reversal of charges made online or offline – Cardholders can get a refund on the purchases they made but canceled within the cancellation period. This applies for both online and offline purchases. Many online merchants provide a full refund for any cancellation however, the cancellation policy differs from merchant to merchant. Some provide a partial refund after deducting the cancellation charges, while others provide store credit, which is equal to the amount of the refund and can be used for future purchases. This amount is credited back to your card account and shall reflect in the next billing cycle. 

Double Credit Card Swipe - One of the most common reasons for payment reversal is a credit card being double swiped. On occasions when either the store or the card server is unreachable, the store clerk or the customer may try ringing the sale again to generate the receipt. This results in the card getting billed twice. That is why the bank always warns customers to check their account for a debit before swiping their card again. 

If you don’t check and swipe the card twice, then you are required to call the bank, who will then instruct the store to refund the amount. 

Refusal To Issue A Credit – Sometimes, due to a faulty POS machine or some technical error, the customer may be charged erroneously but the bank or merchant may refuse to process a refund. In such cases, the consumer has the right to file a complaint against the bank with the appropriate appellate authority, along with all relevant proofs. The user can also approach the consumer court against the merchant that refuses to refund the cardholder the money that was wrongfully charged.

To Summarize: 

Credit card is no doubt a great financial tool to avail some much needed credit to meet a few personal needs. However, as a consumer, it is your duty to be vigilant and prevent misuse of your credit card. Every credit card company has a well-equipped customer support department to resolve any erroneous or fraudulent charges on your credit card. Cardholders should check their credit card statement, emails and alert SMSs carefully to report any mistakes on their credit card charges immediately and get them reversed. 

Customers are protected under the Customer Protection Act from being exploited or harassed by merchants, retailers, banks, or credit card providers, and most of these businesses endeavour to resolve the situation quickly and offer a valid refund to the customer. Even though the cardholder has the option of cancelling or submitting a case, it is prudent to exercise caution while acquiring products or services online or making payments to merchants to avoid the headaches of demanding refunds or charge-backs.

FAQs of Credit Card Payment Reversals

1:If I cancel a payment after making it, will I get a refund from my credit card company?

Yes, the credit card company will issue a refund if you cancel a payment after making it. You will have to call the credit card customer care of your bank to get this done. 

2:Can I cancel a transaction that was made at a store or online?

Yes, credit cardholders can cancel any transaction made, either at the store or online. 

3:How long does it usually take to reverse a charge on my credit card? 

Credit card reversals generally take about 2-4 business days to reflect on your account. 

4:I canceled an item that I purchased at the store, but I didn’t get a refund of the entire amount. Why? 

Did you check for any cancellation charges that the store may have charged? Generally, stores or online vendors charge a cancellation charge for cancelling orders that are placed once. The merchant might have refunded the charged amount after deducting these cancellation charges. 

5:How soon should I request a payment reversal?

You have to report any incorrect charges or fraudulent charges within 60 days for them to be canceled.