How to Reverse Credit Card Transactions?

Posted on Thursday, September 19th, 2024 | By IndusInd Bank

Most would agree that a credit card is a convenient mode of payment. All you need to do is simply swipe your card or enter the card details to finish your transaction. However, there may be instances where credit card transactionsneed to be reversed. This can be because of an incorrect charge or fraudulent transactions.  

Knowing when and how to reverse a credit card transaction can save you time and prevent financial losses. Here’s a guide on the same. 

When Can You Reverse a Credit Card Transaction?

There are several scenarios when you can request to reverse a credit card transaction. These include:

1. Unauthorised or Fraudulent Transactions

If you notice a charge on your credit card statement that you did not authorise, you can request a reversal. 

2. Duplicate Charges

Sometimes, a merchant may accidentally charge your credit card twice for the same transaction. You can request a reversal to remove the duplicate charge in such a situation. 

3. Incorrect Transaction Amounts

If a merchant charges you the wrong amount for a purchase, you are entitled to request a reversal. 

4. Refund for Returned Goods or Cancelled Services

Sometimes, you may return goods to a merchant or cancel a service. In such cases, if you are entitled to a refund, you can initiate a reversal.

5. Undelivered Goods or Services

If you made a purchase but never received the product or service, you can file a dispute to reverse the credit card transaction.

How to Reverse a Credit Card Transaction?

Reversing credit card transactions is a structured process, and it may go as follows:

1. Identify the Transaction

Start by checking the details of the transaction, including the date, amount, and merchant’s name. Make sure it is the one you wish to dispute. This information will be required when filing a dispute.

2. Contact the Merchant First

You should first reach out to the merchant to resolve the issue. If it is a matter concerning them, merchants are often willing to correct the mistake and issue a refund. Here, the reversal can happen between you and the merchant without involving the credit card issuer.

3. File a Dispute with Your Credit Card Issuer

If the merchant does not resolve the issue, the next step is to file a dispute with your bank. Most credit card companies provide a simple way to dispute charges. You can do it through their online portal, mobile app, or customer service. 

For example, IndusInd Bank allows customers to raise a dispute using a Credit Card Dispute Form. Fill out the form with all the relevant details about the disputed transaction and submit it at your nearest branch.

4. Submit Necessary Documents

Your bank may request supporting documents for the dispute. This will depend on your reason for initiating the reversal. This could include proof of cancellation, communication with the merchant, or receipts showing the incorrect amount. 

5. Wait for Resolution

Once you have submitted the dispute, the bank will investigate the claim. The time taken will depend on the complexity of the case. If the bank finds that there has indeed been an error in your credit card transactions, they will reverse the transaction. 

6. Check Your Credit Card Statement

After the reversal process, check your credit card statement. Ensure that the disputed transaction has been reversed and that the credit has been applied to your account.

Also Read: Credit Card Transaction Failed- Money Debited? Here’s What to Do

 What to Know Before Reversing a Credit Card Transaction?

• Before requesting to reverse the credit card transaction, gather all the details about the transaction. This can include receipts, communication with the merchant, and relevant documentation.

• Be aware that some banks may have deadlines for filing a dispute. It is a good practice to raise the dispute within 30-60 days of the transaction date.

• Understand that not all disputes result in a reversal. The chances depend on the investigation by the bank.

• Avoid multiple unnecessary disputes. This could affect your relationship with the bank.  

Conclusion

Reversing a credit card transaction can be simple, if you know the right steps to take. Always remember to keep track of your transactions, communicate with the merchant, and file disputes at the earliest when necessary. With the right approach, you can ensure that your credit card usage remains secure and hassle-free.

When you have the right banking partner like IndusInd Bank, it is easier to stay in control of your finances. IndusInd Bank offers a range of Credit Card options that help you meet your lifestyle needs and preferences while providing a host of rewards, travel privileges and discounts, flexible repayment options, and more. 

Apply now for a Credit Card with IndusInd Bank today! 

Disclaimer:

The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.