Flight or goods refund refused? You can fight-back with a chargeback

Are you still waiting for an item you ordered months ago to arrive?

Or maybe you’re among thousands of passengers being fobbed off with vouchers by airlines or holiday companies?

Maybe it’s time you considered ‘going ballistic’ by using the weapon of last resort in the consumer armoury.

This is called a chargeback, and it is a like a laser-guided missile you can fire straight into where it hurts suppliers most - their bank accounts.

Chargeback is a protection placed on the majority of debit, prepaid and credit cards that allows customers to request that a transaction is reversed if there is a problem with the goods or service they've paid for. 

If you paid by debit or credit card for goods or services that are not delivered then, you can contact your bank and ask them to take the money back out of their account and put it in yours.

It’s that simple.

Adam French, consumer rights expert with Which? magazine said: 'We have heard from thousands of frustrated people who are struggling to get refunds from airlines or holiday companies for cancelled trips, with many offering vouchers instead of refunds.

'If you are haven't been able to get a refund from your holiday provider and you paid by card, then you can request a chargeback from your bank.  

Frustrated airline passengers have been complaining for weeks about the struggles they have had trying to claim cash back for flights that have been cancelled due to the coronavirus pandemic.

Despite requesting refunds many have been offered vouchers instead, with the option to obtain a refund after a 12 month period.

One Ryanair customer, Declan, contacted our personal finance website Thisismoney, over a bizarre webchat episode between him and Ryanair. 

He showed it a screenshot of an online customer service agent stating that 'chargeback is a fraudulent activity' after he contacted the company regarding a refund. He said he was left with the impression that he would be blacklisted.

A Ryanair spokesperson denied that this was its policy and said: 'These claims are untrue. Chargebacks are not considered a fraudulent activity and Ryanair only "blacklists" customers in confirmed fraud cases'. 

We’ll have to give Ryanair the benefit of the doubt here and write down the webchat statement as miscommunication.

But the good news seems is that the airline’s response to the allegation seems to confirm the chargeback system as a valid option for disgruntled passengers.

The Banking & Payments Federation Ireland also confirmed that this is the case.

“Under standard Card Scheme rules, a cardholder can raise a chargeback request with their bank if, they have been refused a refund by the airline and, have not agreed to accept a voucher,” a spokeswoman said.

“This applies for both debit and credit cards. For more information cardholders should talk directly to their bank.”     

Numerous airlines have apparently breached their responsibilities and told passengers they could be waiting months to get their money back. 

So how does it work?

Firstly, it can only be done after a certain amount of time has elapsed, such as "120 or 180 days after the transaction takes place or the agreed date of delivery,” explains the Competition and Consumer Protection Commission, who provides a guide on its website..

These timeframes vary depending on the card scheme, i.e. Visa or MasterCard.

There is no upper limit to claims on claims of this nature. 

But before processing a chargeback claim, card providers will also need to see that you've exhausted all attempts to get the money back from the retailer or service provider yourself.

This means for those looking to claim back their flight money, they must show they have tried to get in touch with their airline or travel agent, despite many being extremely difficult to contact.