Know How To Reverse Credit Card Transactions

31 MAY, 2022

Credit cards are our companions in meeting urgent financial obligations and improving our financial situation. One can quickly make a payment via a credit card and meet any financial commitment or pay for any product or service. One can also use credit cards to pay utility bills when needed. Transaction via a credit card is quick and facilitates the payer and receiver. However, one may need to reverse a credit card transaction for several reasons. As a responsible credit card user, one should know how to check credit cards statement and reverse a credit card transaction. Read on to learn more about reversing credit card transactions.

Common Reasons For A Credit Card Payment Reversal

Fraudulent transactions - Payment reverse is initiated by the cardholder in case they receive a notification not initiated by them or another cardholder.
Inconsistencies on credit card statement - While checking the card statement, if some transactions do not match, you should take action for the reversal of credit card transactions.
Incorrect or defective products - You might have paid for products and if they are defective or not delivered. In such cases, it is important to reverse transactions.
Automatic payments that have been cancelled - When your credit card is charged with the auto payment facility even after the cancellation, ,opt for the reverse payment facility to get a refund.

When Is Credit Card Payment Reversal Required?

One may wonder why there is a need to reverse credit card transactions. Well, there are several scenarios where a credit card user is bound to reverse a credit card transaction. There are multiple customers of a credit card issuer making more than a thousand payments daily. Credit card issuers also offer the facility of reversing a credit card payment when needed. For instance, credit card payment reversal may be needed when we cancel an order made via the credit card. However, order cancellation may not always result in a payment reversal from the lender. Some instances where one has to apply for a credit card payment reversal are as follows:

While viewing of credit card statement, one may come across a payment that isn’t made by them. In case of an unauthorised credit card payment, one can apply for payment reversal.

One may come across a scenario when the payment deducted via a credit card does not match the item or service. For example, consider someone buying a product worth INR 1,000 via their credit card. However, the card statement shows that INR 2,000 is deducted for the product. They can apply for a credit card payment reversal in such a case.
Sometimes, a credit card user may experience a fraudulent transaction. Therefore, one should quickly inform the credit card issuer and apply for a payment reversal in such a case.
A credit card user has the right to set automated payments to pay bills, instalments, or any other financial obligation. Sometimes, a user cancels an automated payment, but the amount is still deducted from their credit limit. One can apply for a credit card payment reversal in such a case.
Credit card issuers can make mistakes and charge the wrong amount on the credit card. One can always apply for a payment reversal with the credit card issuer for any such error.

As one can see, there are several scenarios where one needs to reverse a credit card payment. When one sees a wrong charge on their credit card, there is no need to panic. Luckily, credit card issuers allow users to apply for payment reversal. Let us see ways to apply for a credit card payment reversal.

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Ways To Reverse A Credit Card Transaction

There are several ways to reverse a credit card payment. As a responsible credit card user, one should know how to reverse a credit card transaction. Some common ways to reverse a credit card transaction in 2022 are as follows:

Refunds

One may come across situations where there is a need to cancel an online order. A product or service can be quickly booked via credit card online bill payment. Whenever one cancels an online order, the respective merchant or the credit card issuer offers a refund. However, one should check the refund and return policy of the credit card issuer or the respective merchant before cancelling an order placed via a credit card. Also, in some cases, merchants offer store credit instead of a refund. With store credit, one can buy something from the same merchant. Some credit card issuers may also offer reward points instead of a cash refund. Usually, the refund amount received in cash is added to the available credit limit.

Chargebacks

When one cancels an online order, ask for a chargeback to the respective credit card issuer. A chargeback is usually a refund of the entire amount from the respective credit card issuer. One can also ask for a chargeback in case of a fraudulent or unauthorised transaction. In case of a fraudulent or unauthorised transaction, one should submit the chargeback request to the credit card issuer as soon as possible.

The time duration when one can ask for a chargeback can be different for each credit card issuer. Usually, one can ask for a chargeback for any credit card transaction up to 180 days from the transaction date. A reliable credit card issuer will offer chargeback for an unauthorised or fraudulent transaction within 1-2 days. Some credit issuers also adjust the chargeback amount at the end of the billing cycle.

Card swiping errors

Sometimes, one may swipe their credit card in the POS machine at any physical store. The money can be deducted from the credit card but does not reach the merchant. In such a case, you may have to swipe your credit card again for payment at a physical store. One can always check their credit card statement to know whether the amount has been deducted twice or not. If duplicate payments have been made, one can submit a payment reversal request to the respective credit card issuer. If the money has been transferred twice to the respective merchant, one can ask the merchant to return it.

Also Read: Top Reasons To Avoid Credit Card Late Payments

How To Submit A Credit Card Payment Reversal Request?

Similar to credit card online bill payment, one can also submit a payment reversal request online. The procedure for submitting a payment reversal request may change from one credit card issuer to another. One can easily submit a payment reversal request via the official website or dedicated mobile app of the credit card provider. Submit a payment reversal request for an unauthorised payment now!

Frequently Asked Questions:

Q1. How long does a person have to cancel the credit card payment?

A.person has 60-180 days to cancel a credit card payment following the date of such transaction. And in case of a fraudulent transaction, the cardholder can get the charge back within one to two business days following the reversal of credit card transactions.

Q2. How to cancel a pending transaction?

A.You can cancel a pending transaction online by visiting the bank website. Log in to your account and check the pending transactions; click on the transaction and click “cancel”. Confirm the transaction cancellation by clicking the “ok” button. Now the cancelled transaction will be displayed. You can also simply call customer service to cancel a pending transaction.

Q3. How many days it takes to reverse a payment?

A. The bank has to reverse transactions within five days if the account is debited and the receipt is not generated at the POS or cash isn’t withdrawn from the ATM. If they fail to reverse the transaction, they have to pay Rs. 100 per day to the account holder. In case of IMPS and UPI failed transactions, the bank has to reverse payment within a day.