Can You Go To Jail For Chargebacks

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Can you go to jail for chargebacks

Can Someone Be Jailed Because Of Fraudulent Chargebacks?

This is a newly searched term we started seeing on our website and we decided to respond to the same by creating a video about the same

Chargeback is a privilege offered to Buyers by the card scheme. The purpose of this privilege is to offer buyer protection. For any prosperous business relationship, both the parties must follow ethical principles. If the buyers start creating challenges for the merchants by placing fake disputes at the card issuing bank then it creates a challenge for the entire system.

Note:- Before Placing a Dispute please contact the seller or the merchant. Also, read the Terms of Service and Refund Policy Listed on the merchant’s website. Please ring the merchant first because they can issue a refund or resolve the issue.

Typically a customer places Chargeback or Dispute with card issuer in 3 scenarios

  • Product Or Service Not Received
  • Product or Service Received but of Inferior Quality
  • Product Lost or Stolen

Sometimes customers call the bank to dispute the transaction in case if they don’t recognize the charge since the descriptor is strange or maybe a family, Boyfriend, Girlfriend, Nephew, Neice or colleague placed the order. This kind of dispute is called Friendly Chargebacks and it is a not the most common reason for chargebacks.

Please keep in mind that when you as a Buyer place a dispute on the transaction the card association gives equal opportunity to the seller to prove if the product or service was delivered. For some reasons even if you win the chargeback case and get the money back then you must return the product to the seller.

If you try to play smart and want to keep the product and money then be rest assured ” You Are Playing with Fire”

The Merchant can block your card for all future transactions and can also take other legal measures to get the money back. If the product is not worth enough then you may get lucky but remember you only need one merchant to take you to the court.

Please Maintain the Ethics of Business. As a Merchant show what you sell and as a buyer Pay the price for the product you bought. One merchant can take a Fraud Customer to court and if the merchant wins then the customer may have to pay a heavy penalty or may also have to pay a visit to Jail.

Suggested Reading

https://www.huffingtonpost.com/gobankingrates/4-ways-youre-accidentally_1_b_6179388.html

https://www.cbsnews.com/news/friendly-fraud-an-enemy-to-everyone-in-the-e-commerce-chain/

https://en.wikipedia.org/wiki/Chargeback

Note:- The content on our website and our youtube page should not be concidered 100% accurate.

Bankim Chandra

Bankim Chandra

Bankim Chandra is a Merchant Account consultant. He works with merchants globally and helps businesses in getting reliable payment processing solution. He writes extensively on the internet about Payment Gateways, Credit Card Processing, Echeck Processing, Chargeback Alerts, ACH and Business Funding.

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