"Chargeback" procedure to obtain a refund
Applicable to consumers living in France and paying with a French bank card, including co-branded cards “carte bancaire (CB)”
Have you paid by bank card for a purchase or a service from a seller in Europe? You did not receive your order? The trader has gone into bankruptcy? The product ordered on a Spanish website is counterfeit? You are the victim of a hidden subscription? In certain situations, you can request a recovery of the sums paid using the chargeback procedure, also called reverse billing or retrocession.
What is chargeback?
The chargeback procedure is a mechanism for disputing a credit card transaction. Your bank carries out this procedure with the merchant's or trader's bank. Chargebacks are used to determine financial liability in the event of a dispute over a transaction. It is a formal process based on specific rules and strict deadlines. It is used to protect payment card holders when they wish to dispute a transaction.
This procedure allows you to request a recovery for a credit card payment. You can initiate it if you are the victim of fraud involving the use of your card, or if a business fails to meet its obligations (non-delivery, non-refund, etc.). Payment networks (CB, Visa, Mastercard, etc.) provide for this service in their rules. Banks automatically adhere to these rules when they market CB, Visa, Mastercard and other bank cards.
The chargeback can give you an additional chance of recovering your money. Especially if you cannot quickly resolve the issue with the trader.
However, not all French banks communicate clearly about this protection. Therefore, check with your bank. Ask them if the payment network(s) listed on your card allow you to request a chargeback for commercial disputes! The bank must tell you whether your payment network (CB, Visa, Mastercard, etc.) offers this protection. If so, it must assist you with the process. However, not all payment networks offer this protection.
Chargeback vs. payment dispute: what are the differences?
Normally, once you pay with a card, you cannot reverse the payment once it has reached the merchant. A card transaction you authorised cannot be revoked.
Chargeback, however, gives you a commercial option to obtain a refund under specific conditions through the card network.
Payment disputes (opposition) are defined by French law. They apply in these cases (Art. L-133-17 of the French Monetary and Financial Code):
Fraudulent use of your card or its data
A hacker has stolen and fraudulently used your card number, even though you still have the physical card with you. You can find more information and advice in our articles on bank card fraud and payments in France. In this situation, you may dispute the fraudulent payment with your bank within very strict deadlines. The deadline is 13 months for a fraudulent debit within the EU, Liechtenstein, Iceland or Norway. And it is 70 days for a fraudulent payment outside the European Economic Area.
Insolvency proceedings or liquidation of the merchant at the time of payment
You may file an opposition as long as the merchant’s account has not yet been credited.
Unauthorised payment
Example: a hidden subscription. You made a payment, but you did not know the exact amount. The amount eventually debited is higher than you expected (Article L-133-25 of the French Monetary and Financial Code). You may request a refund from your bank within 8 weeks from the date of the debit.
Good to know
Be aware that the legal deadlines to notify the bank differ from the deadline to take legal action. In France, you have 5 years to take legal action against your bank.
Tip: always act promptly to demonstrate your good faith and revert to the procedures for appealing to your bank.
How to request a chargeback from your bank?
To request a refund via the chargeback procedure, contact your bank. The chargeback offered by payment networks (CB, VISA, Mastercard, etc.) is intended for banks. It is up to your bank to request it on your behalf.
Therefore, contact your bank directly and ask them to forward your chargeback request to your card's payment network. To submit your request, you will need to provide a summary of your claim and a ‘Reason Code’. The Reason Code is a number corresponding to your claim. For example:
- Code 13.1 for VISA for non-delivery of goods or services.
- Code 4837 for Mastercard for a fraudulent transaction.
You can find the different reason codes online:
- Codes for VISA ;
- Codes for MasterCard.
Although this is not always the case, some banks openly mention chargebacks. Others mention the possibility of disputing a payment in the event of a commercial dispute. A few even provide forms to fill out.
Consult your contractual documents, the general terms and conditions of your contract and the FAQs on your bank's website. Any information mentioning the possibility of a chargeback can be used to support your request to your bank.
Also attach a concise, chronological summary of your complaint and any supporting documents showing that you have already tried unsuccessfully to resolve the issue with the trader.
For example, in case of non-delivery, provide your bank with:
- Proof of your order (invoice or order confirmation).
- Proof of payment.
- Your correspondence with the trader (including any unsuccessful formal notices).
- The carrier's tracking documents proving loss, delivery to the wrong address or mistaken signature. Please also enclose a copy of your identity card.
How does chargeback procedure work?
A chargeback is neither automatic nor guaranteed. Your bank must forward your request to the payment network. The network then contacts the merchant's bank. It sends them all the information provided and asks for their position.
Depending on the problem and the information provided, your bank may provisionally re-credit you with the disputed amount. This recovery is then a completely separate transaction, independent of your initial payment. However, the merchant may contest this decision. This may lead to arbitration within the payment network.
The refund obtained is therefore not always final. The payment network may reverse it if the merchant contests it.
Deadlines
React immediately as soon as you notice a problem with a transaction. French law allows for a certain amount of time to dispute unauthorised payments (up to 13 months in the EU).
However, the chargeback procedure is based on commercial rules set by payment networks (Visa, Mastercard, etc.). These time limits are much shorter.
In practice:
- Ideally, contact your bank within 30 days of the purchase or the scheduled delivery or use of the service. For example, for a plane ticket, it is the date of the flight that is taken into account.
- Depending on the reason for the dispute, payment networks impose strict deadlines. Most banks no longer process chargeback requests after 90 to 120 days.
- You can dispute specific cases (services not provided, subscription interruption) up to 120 days after the scheduled date of service. However, you can never exceed the limits set by the network.
Tip: never delay in contacting your bank. The sooner you act, the more likely your request will be accepted. Keep all evidence and explain your situation clearly.
What to do if your French bank refuses to request chargeback?
Your bank may not be familiar with this procedure.
Reasons for refusal given by banks
- Some banks believe that it is not their place to ‘interfere in a commercial dispute’ relating to the performance of a contract of sale or provision of services once the payment order has been executed. Some argue that they are not authorised to ‘arbitrate a dispute’ between a seller and a customer once the payment has been validated by the cardholder.
- Some institutions also state that once the cardholder has given their consent to a payment transaction, it is deemed to have been authorised and becomes irrevocable.
- Others respond that in order to claim a chargeback, you must have a banking contract that provides for this type of guarantee, which clearly seems to result from confusion between chargebacks and possible insurance (see below).
- Finally, some banks confuse payment dispute with chargebacks. They limit the reimbursement of card transactions to the cases and/or time limits exhaustively listed in the Monetary and Financial Code (see above). However, chargeback is a separate commercial procedure linked to payment networks.
Our advice for obtaining a chargeback
Insist with your bank
It must forward your file to your bank card's payment network as part of the chargeback procedure. Remind them of the situation and the applicable reason code (Visa codes / Mastercard codes).
The bank does not have to arbitrate the dispute
Make it clear that your request does not concern a dispute over a card payment transaction. You want to initiate a separate procedure specific to credit card networks. Remind them that you are not asking them to settle the commercial dispute or rule on the refund.
Argue on the basis of loss of opportunity
By refusing to forward your file, the bank is depriving you of a serious chance of recovering your money. If the conditions are met, the bank could issue a chargeback and you would have a chance of being reimbursed. Although success is never guaranteed, the bank should, at the very least, forward your request. If it fails to do so, you could hold it liable.
Beware of confusion with other procedures
If the bank invokes the ‘irrevocability’ of the payment, specify that this concept does not exclude a chargeback procedure. Any money you may recover would result from a new transaction, completely separate from the initial payment.
If your bank claims that chargebacks are only possible for French transactions, or conversely only for purchases abroad (or even outside the EU or EEC), ask them for formal proof. Such a claim may be the result of confusion with credit card insurance (which has limited geographical coverage).
Seek assistance from your credit card issuer
At the same time, contact the payment network. Ask them to confirm that your card does indeed offer chargeback protection, or even for assistance in resolving the situation.
What should I do if my bank advisor cannot tell me whether my card is eligible for chargeback?
Not all payment networks offer this protection. However, your bank must inform you whether your payment network (CB, Visa, Mastercard, etc.) does indeed offer this protection and assist you with the process. If in doubt, you should contact the card network. Do not let your bank discourage you! The chargeback procedure, if your card is covered, is a commercial right. Be firm, informed, and do not hesitate to contact your bank manager.
Important for consumers in France with co-branded cards!
The majority of bank cards issued in France are co-branded. This means that they are recognised by both the French CB network and the international network. A co-branded card therefore displays two logos, for example CB/Visa or CB/Mastercard.
Many French consumers report difficulties obtaining chargeback when the payment was routed via the CB network.
As a consumer in France, you always have the legal right to choose the payment network you wish to use for your transaction.
Advice if you have a co-branded card
- Ask your bank to explain the advantages and disadvantages of each network.
- When making online payments, select the Visa, Mastercard or other payment network (depending on your card) if you wish to benefit from the advantages associated with that network (e.g. chargeback or card insurance for your holidays). You can usually find the network to select in a drop-down list. Otherwise, it appears directly next to the card number entry field.
- In shops in France, payment terminals are often configured for the CB network. But you should be able to choose the payment network by inserting your card into the reader. Then press the yellow button before entering your PIN. This will display the payment networks associated with your card, allowing you to make your selection.
The seller does not allow you to choose the payment network
If the website you are purchasing from does not offer you this choice, report it (for French sellers) on the SignalConso platform. Invoke Article 8 of Regulation (EU) 2015/751 on interchange fees for card-based payment transactions. This article authorises a merchant to define a preferred payment network when paying with a co-branded card. However, it guarantees that consumers have the ability to override this default choice. They must be able to use the network of their choice for their payment. No mechanism can limit this choice at the point of sale or online.
If the seller is based in another European country, you can contact us for reporting purposes only.
What to do in case of a problem?
- Try resolving the issue directly with the merchant (preferably in writing).
- For disputes with a trader in another EU country, Iceland, or Norway, you may contact us. Please note that we do not intervene in cases of fraud. Please also be mindful of the deadlines that must be met in order to benefit from chargeback.
- Submit a chargeback request to your French bank. Choose this option if the foreign trader does not respond, refuses to refund you and deliver your goods, or has gone bankrupt.
- If your bank refuses to take action, follow the complaint procedure set out by the bank. The final step will be to refer the matter to the banking mediator (ADR-body). Base your case on the arguments you have already put forward to your bank, in particular the loss of opportunity for reimbursement. Please note that the time limits for chargebacks are short. Once the mediation process is complete, you may be outside the time limit for requesting a chargeback.
Also consider the insurance linked to your bank card
Your bank card may offer insurance that could be useful in the event of problems with an online purchase. For example, some bank cards offer ‘remote purchase’ guarantees. Check the guarantees and conditions of this insurance. You can request a copy from your bank or download it directly from your bank card brand's website.
A warranty that is often limited
However, these guarantees often have a ceiling. They may include an excess, or even exclude certain goods or services (vehicles, jewelry, goods purchased on auction sites, digital data, etc.). They may also be limited to non-delivery or even the delivery of non-compliant goods. In some cases, it is only possible to make a claim for a transaction with a French professional, while some insurance policies will only cover you outside the European Union or the European Economic Area, for example.
Please note that the deadlines for reporting a claim may vary depending on the card and its terms and conditions. Carefully follow the procedures for making a claim set out in these terms and conditions.
You can always initiate a chargeback if the insurance does not work
You can always initiate a chargeback if the insurance does not work. Closely monitor the follow-up to your claim. If the incident occurred in the first few weeks after your payment, and if the insurance company refuses to cover the claim in accordance with its terms and conditions, there may still be time to initiate a chargeback procedure, provided that the incident is covered by this protection!
Is chargeback a factor when choosing a card?
Chargebacks can be a deciding factor when opening an account. It doesn’t always guarantee a refund, but they can offer a real additional chance to resolve a dispute related to a card payment.
In some countries, banks use this feature as a marketing argument, highlighting the possibility of quickly resolving certain commercial disputes. Some neobanks also mention it directly, emphasizing its simplicity and speed.
The popularity and effectiveness of chargebacks also vary from country to country.
- In Denmark, for example, it is enshrined in law for credit and debit cards and can only be refused if the deadline has passed or if the dispute does not fall within its scope, but in practice, the mechanisms offered by credit cards often provide better protection, for example in the event of merchant bankruptcy or receipt of counterfeit goods.
- In the Netherlands, banks actively promote it and present it as a benefit for consumers.
- In Belgium, chargeback is accessed via a single form but seems to be limited to credit card payments.
When opening a bank account in Europe or applying for a payment card, find out about the guarantees offered by the card provided by the bank!
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and Small and Medium-sized Enterprises Executive Agency (EISMEA). Neither the European Union nor the granting authority can be held responsible for them.