SINGAPORE: The Consumers Association of Singapore (CASE) has unveiled a basic chargeback guide to protect consumers against disputed transactions involving their credit cards.
In a consumer advisory on Monday (Nov 27), CASE said there has been a "lack of clear and specific directions" for consumers on how to file a chargeback application online. Hence, it has compiled a guide based on the guidelines of major international credit card providers and local banks.
Chargeback protection allows credit card users to dispute a charge and reverse a transaction if a purchase does not go through in the event of business insolvency, CASE said.
Consumers who pay by credit card can ask for a chargeback within 120 days of the date of transaction for non-delivery of goods and services, delivery of unfit goods and services, transaction errors and/or unauthorised transactions, CASE said.
This is typically important for purchases involving beauty or travel packages, fitness club memberships, home renovation services, as well as big-ticket items such as cars and furniture.
If these businesses become insolvent, consumers, as "unsecured creditors", have "little chance" to recover their repayment, CASE said.
Upon submission of the chargeback claim, the card issuer will investigate to determine if the claim is valid. If the card issuer determines that the chargeback is valid, the card issuer will proceed to initiate a chargeback with the acquiring bank, CASE said.