Many people in Ireland think that purchases made with a credit card are somehow better protected against faults or non-delivery.
But – in Ireland ,there is no difference in the protection provided in the form of chargeback on Debit or Credit Cards .
In the UK – the Consumer Credit Act (Section 75) specifies that credit card providers are jointly liable with the retailer for goods bought with a credit card. ( On sales between £100 and £30,000.).
So ,in the UK, any problems with faulty goods or goods not received must be refunded by the credit card company if the retailer can’t or won’t sort it out.
There is currently no consumer legislation similar to the UK’s “Section 75” here in Ireland.
Card Chargeback
A chargeback is the return of funds from an already cleared transaction processed on a credit/debit card to a cardholder’s account.
Purchases of goods or services, made with credit cards and debit cards by Irish residents all have some consumer protection in the form of “Chargeback“.
The chargeback process has no legal basis – but it is built into the procedures of debit and credit card suppliers all over the world.
Having this chargeback option gives consumers more confidence and encourages them to use cards instead of cash or cheques. More people using the cards means more income for Visa and Mastercard.
Mastercard and Visa both have chargeback procedures in place for all their cards. These procedures apply to prepaid cards too.
Refunds can be claimed from the card provider when goods don’t arrive or if they arrive damaged or not as described. The chargeback can still be applied where the retailer has ceased trading or has gone bust – because the money comes from the retailer’s bank. There’s no upper limit to the refunds.
How to get a Chargeback on a Debit or Credit Card
If you have paid by debit or credit card for goods or services that were not delivered to you as promised or as described – you should first contact the retailer to seek a refund.
If the retailer will not refund your money, or they have gone out of business, then you should contact the card issuer and request a Chargeback.
It seems that some banking staff in Ireland are not fully aware of this chargeback process – especially where Debit Cards are concerned. Therefore you may need to be persistent and ask to speak to someone in charge if you don’t get very far.
AIB Chargeback – Call Card Services Team at 01 2695022
Chargeback Timescale
- A chargeback request can be made up to 120 days after the card transaction. In the case of goods or services not being delivered, a chargeback can be raised up to 120 days from the agreed date of delivery.
- The card provider will refer the query to the card processing company. (The “Acquirer”) .
- The acquirer then contacts the retailer advising them of the queried transaction and requesting any required documents. At this point, the retailer’s bank account is debited.
- The retailer has 14 days to respond to the chargeback request, otherwise, the debit stands, the customer is refunded and the case is closed.
- If the retailer supplies documentation (i.e proof of delivery etc), this is assessed for adequate defence in accordance with scheme rules and regulations. The case may need arbitration – but in the majority of cases where the consumer has a valid complaint, the chargeback will go through without any complications.
Read here about Debit and Credit Card charges abroad
Some interesting information about Current Bank Account Charges in Ireland.