In banking, the term chargeback refers to a refund for a credit card or debit card transaction. Bank of America and other financial institutions allow customers to dispute transactions and have the charges reversed. The Bank of America chargeback service is meant to be used for transactions that were posted fraudulently or in error, though many people try to use it for purchases that they want to return.
Return Item Chargeback
The chargeback process is governed by the federal Fair Credit Billing Act. A limited number of reasons are allowed for disputing credit card charges under this legislation:
- A consumer's card is used by someone else without their permission. This could be a friend or relative who uses your card without permission or a stranger who steals your card or card number.
- A charge was billed in error. For example, you bought a pair of shoes and were charged twice.
- There was a problem with a purchase that can't be worked out with the merchant. This category might result in a return item chargeback.
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Purchases that are disputed need to meet certain requirements before the customer receives a chargeback. You must contact a merchant and try to work out issues with a purchase before disputing the charge, or the merchant could successfully fight your claim. According to Forbes, violating this rule could result in being blacklisted by the merchant. A bank or credit card company may decide to close the account of a customer who makes a practice of disputing charges.
Bank of America Credit Card Disputes
It's important for credit and debit card account holders to check transactions on monthly bank statements. Bank of America provides online banking that allows you to check even more often. If you see an unfamiliar transaction, you have 60 days to dispute the charge with Bank of America.
Before disputing a charge, Bank of America suggests that you check the details of the charge to make sure you don't recognize it. You can find information about the merchant on your billing statement. Some merchants post charges under different names or from different states, so do some investigation before assuming the charge is fraudulent. You should also verify that no one you know is using your card without your knowledge.
Bank of America Chargeback Process
You can dispute a charge by signing in to Bank of America online banking or by calling Bank of America customer service. Once you report the problem, the bank will contact the merchant and determine whether the charge is valid. If Bank of America determines that a transaction was posted in error, your account will be adjusted with a chargeback that cancels the charge or debit.
BOA Chargeback Fee
Bank of America customers don't have to pay a fee for disputing a charge. Merchants are typically subject to a $25 to $50 fee for each disputed charge that the bank must refund with a chargeback. Since these charges are eventually passed on to the consumer in the form of higher prices, it's important to make a good-faith effort to resolve purchase issues with merchants before using a credit or debit card dispute to receive a refund.
Chargebacks for Fraudulent Charges
Contact Bank of America immediately if you think your credit or debit card is being used fraudulently. You won't be responsible for any subsequent charges, and your account will typically be reimbursed for illegal charges as soon as you contact the bank. In some cases, Bank of America may contact you about suspicious charges even before you notice them on your bank statement or online.