The coronavirus pandemic (COVID-19) is having a substantial impact on our everyday lives and how we pay for goods and services, from making more purchases online to comprehending how best to deal with disrupted travel bookings.
To help our cardholders during this time of uncertainty, we wanted to highlight options available for disputed transactions made with your Visa card, namely chargebacks. As well as broader tips to give a degree of clarity during ever changing circumstances.
A chargeback is a way for you to attempt to reclaim your money back when you do not get the goods or services you paid for, including if the retailer or supplier has gone out of business. The bank that issued your card attempts to reclaim the money from the retailer’s bank on your behalf.
Chargebacks are not a legal right, but if you have paid with a Visa debit or credit card, you can speak to the bank that issued your card about whether this option is available, and they can then put in a request to the retailer’s bank. This is relevant in a number of circumstances, including:
Note there are terms and conditions associated with the time in which you can request a chargeback.
It is important to understand that you must always first try to resolve the issue with the retailer before you can complete a chargeback request. Contact them by phone, post, email or in person to try to get your money back.
If the retailer refuses to give you a refund or they are unresponsive, you can then start a chargeback claim. Please be aware there is not a guarantee that the chargeback will be successful.
Follow these steps to pursue a chargeback for your disputed transaction:
1. Contact your provider (e.g your bank or card issuer) and tell them that you want to make a claim through the chargeback scheme
2. Ensure you have the details of the transaction (date, amount) you want to dispute, and be ready to share this with your card issuer
3. In some instances you will need to provide copies of any correspondence you had when you tried to get your money back from the seller, for example letters or emails
4. Finally, your card issuer may ask you to complete a claim form along with a signature that you send back to them along with the evidence noted in step 3
Given the speed of the COVID-19 outbreak and ever-changing scenarios, there has been an unprecedented level of uncertainty for those with trips already booked. As a result, below we have prepared guidance to help make sense of some of the options available for you, if your travel plans have been disrupted:
In the first instance, you should always contact your airline, hotel or travel agent. They will inform you of their policies which they have in place, in relation to cancellation.
If this for one reason or another is unsuccessful, and you booked with a Visa card, there is a potential secondary option. This is where a chargeback process described above could help.
Your airline, hotel or tour operator should always be your first point of contact. Many are continuously monitoring the COVID-19 situation, and have already cancelled flights and holidays, in which case you may be offered refunds, or alternative dates if you decide to keep your booking.
Whilst your policyholder will ultimately decide this, you are more likely to be covered if you bought travel insurance before COVID-19 became a known event. Thoroughly review your policy terms and conditions, and be sure you know of any add-ons you purchased, before getting in touch with your provider.
Please note that the insurance claims process will also depend on timing of your travel. If you have booked travel to a currently banned destination for later in the year, it is likely you will need to wait for the hotel / airline / travel agent to decide whether to cancel the trip, before you can start a claim or refund process.
If you did not specifically buy travel insurance, it may be worth checking whether this benefit came with your bank account. Travel insurance can sometimes be included as part of your account.
The COVID-19 pandemic is creating a situation that is changing daily, if not hourly at present time. With this in mind, it is important to take guidance from the relevant outlets. Here are some suggested websites to help you with your decision:
Local government travel pages provide official guidance on travel restrictions and rulings in the current situation.
The World Health Organization (WHO) provides information on the actions and precautions that should be taken, as well as the latest updates on the COVID-19 pandemic.
To get the global picture, and understand each country’s current travel advice, the International Air Transport Association (IATA) have provided an international summary for all current restrictions in place.
