I have been advised twice by my financial institution, recently and a few years back, that Visa charge this fee. Whether its because PayPal wouldn’t resolve it, not sure, but I was asked first had I gone to PayPal for resolution. When I stated that PayPal would not resolve, I was then advised I could request a refund from Visa, however, there was a charge. This could be a fee charged to the institution, who then charge on to customers
Which is your financial institution please? And were the respective charges to EU located businesses or domestic or elsewhere?
@helenws, refunds would not come from Visa. They would come from the merchants bank, the acquirer bank. Via the chargeback mechanism.
The chargeback process can have multiple paths. The most common is when a customer lodges a chargeback and the merchant accepts it by not challenging it. If the merchant tries to negotiate that can result in an outcome. If there is a stalemate Visa/Mastercard/Amex become binding adjudicators.
At least in the EU there is a documented fee that can be levied on a chargeback process. It is published by Mastercard and I can presume Visa/Amex may operate under a similar scheme. This 3rd party site explains it
Other than @helenws’ mention, I have not seen that fee passed onto the customer before, and am thus interested in which financial institution is doing it, and if it involves the EU.
Has anyone else been levied with a fee from their financial institution, and which one, for lodging a chargeback?
Westpac for one, has a merchant agreement that charges the merchant $33 per chargeback, not the customer.
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I too am interested to see this information, because it sounds very dodgy to me if a CC holder was being charged for exercising their rights under credit card network’s rules of dispute resolution.
Laboraties Credit Union (CSIRO crddit Union) is the financial institution, and am not sure where the scam originated. I requested a refund and received a call from someone from the company who had an accent that sounded like they were from India
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Some of their fees for non-standard transactions/interactions are a bit high…
Looked at their fees and charges and noted the fee for Chargeback, which was the name of the fee I paid. Does this mean it was LCU that charged this fee, and not Visa as I was told?
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Correct. It is a LCU charge. Not VISA.
However, they ** it and claim it is cost recovery from third party charges. That I doubt in the case of valid charge back from a Visa card, UNLESS, the dispute resolution finds that your claim is found to be baseless and the charge put on the merchant is reversed and put back on the issuer. And then back on you.
But you seem to be charged regardless.
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Thank you for the explanation. I was disappointed with the charge. I will be closing my account with them
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