Today, most people tend to make payments for goods and services using their credit cards online or offline. Sometimes after making a payment, one might have to cancel the order or transaction because of some reason. When such cancellation takes place, the credit card issuer might reverse the payment.
A payment reversal is when a customer gets back the funds from a transaction. This process can happen in many ways such as customer disputes, authorization reversal, and sometimes also refunding the payment. Each of these reversals takes place at different stages of the payment process and for various reasons.
Ways to Receive Reversal of Credit Card Payments
Some of the ways in which people can receive reversal of credit card payments are as follows:
Online Refunds – Today many people use their credit cards to make purchases online. When you make online payment for a product and then cancel your order, you may get a refund of the full payment. Before purchasing you should read the returns and refunds policy of the merchant you are making the payment to. Every merchant has their own refunds policy for cancelled orders. There are some websites that do not provide refunds, some have conditions on refunds, some provide points as refunds instead of cash and there are some websites that provide the full refund for a product without asking for a reason.
Double Swipe – Sometimes when you swipe your credit card at a store and receive a SMS saying you have been charged, but the machine does not provide a charge slip, then the store owner may ask you to swipe your card again. In such cases, you end up paying twice for a product because of a glitch in the machine. If you report such incidents to the bank, then your bank will forward details about the same to the merchant and ask them to accept the reversal request.
Cancellation of Purchase – As a credit cardholder, you have the option of cancelling any transaction that you may have made using your card online or at physical stores. You can either cancel the transaction directly or demand a chargeback. For direct cancellation, you must cancel the order and the payment will be reversed in their bank account within 30 minutes. A chargeback is a way through which you can cancel your purchase if you are not satisfied with the service or product you bought. In this case, the banks will reverse the amount to the credit card and will not pay it to the merchant. You must place chargeback requests within a period of 180 days, starting from the date of purchase.
FAQs
1. How long does a person have to cancel the credit card payment?
A person or a bank has a period of 60 days to cancel a credit card payment.
2. How many days does a credit cardholder have to reverse a payment?
A cardholder usually has about 40 days to reverse a payment.
3. Can a pending transaction be cancelled?
Yes. A pending transaction can be cancelled at any time before it is executed by the merchant. If the transaction is approved, the customer will have to contact the merchant and the bank or lender to resolve the issue.
