![]() Chargeback Time Limits By Network: Mastercard Not only can cardholders file a chargeback months beyond the actual transaction date, they may also be allowed to dispute back payments for several months (or years) of the term of the subscription. In these situations, the merchant supplies goods or services on an ongoing basis, but the customer’s card may only be charged once a year. For defective or “Not as Described” reason codes, the 120-day window may still apply, but “Day One” will vary depending on the circumstances. ![]() Others require banks to wait for a certain period before they can issue a chargeback. Some reason codes offer cardholders over twelve months to file. These may impact the dispute time limits. Other FactorsĮvery chargeback is filed with a reason code that identifies the given reason for the dispute. The merchant, however, must respond within seven days. That’s 50% more time than what the major card networks allow. On the other hand, PayPal - which can serve as a credit card processor for merchants - allows buyers up to 180 days to file a claim. The networks say merchants have a 45-day response window, but the Chase credit card chargeback time limit for merchants is 39 days. Acquirers must also meet the deadlines, thus may move up the merchant’s deadline to barter for time.įor example, a Chase Bank cardholder will only have 60 days to dispute a transaction, despite the network’s limit being 120 days. It’s not just the card networks that can control the time frames for chargebacks. Card issuers, for example, usually give cardholders 120 days to dispute a charge (double what the law requires). The Fair Credit Billing Act of 1974 mandates that all cardholders have a minimum of 60 days to dispute illegitimate charges.īanks, processors, and card networks can set their own deadlines, provided they meet the minimum requirements under the law. ![]() The chargeback process was designed as a safety net to protect consumers from fraud and nefarious merchants. Second, are the limits imposed on banks and merchants that determine how long they have to respond to a cardholder’s claim at each stage of the process. First, the chargeback time limit which dictates how long cardholders have to file disputes. Also called credit card dispute time limits, they vary from one card brand to another, but are often set at 120 days following a purchase. Chargeback time limits refer to t he deadlines that merchants, banks, and cardholders are permitted when filing different phases of the chargeback process. ![]()
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