Chargeback, or chargeback, is an effective consumer protection tool, especially in the context of online financial transactions. This procedure is designed to help customers challenge transactions made by fraudulent brokers and recover their funds. The Chargeback mechanism allows customers of banks and other financial institutions to initiate a refund procedure if they have been victimised by unscrupulous brokers.
Fraudulent brokers operating in the online space often offer their victims to invest funds under the promise of high returns. However, once customers invest their money, they encounter problems: inability to withdraw funds, refusal to provide account information, and pressure for additional investments. In such situations, Chargeback becomes a lifeline, allowing clients to dispute transactions and get their funds back.
Chargeback procedure starts with the client contacting his/her bank. The client must provide the bank with all available information and evidence confirming the fact of fraud. The bank, in turn, starts the application process. At this stage, it is important that the client is as prepared as possible and has all the necessary documents, such as correspondence with the broker, screenshots, bank statements and other evidence.
The issuing bank of the card from which the transaction was made reviews the application and, if necessary, requests additional information from the customer. If the bank finds the application justified, it initiates the chargeback procedure through the payment system (e.g. Visa, MasterCard). The payment system contacts the acquiring bank that handled the transaction with the broker. The acquiring bank, in its turn, passes the application to the broker and asks it for an explanation of the disputed transaction.
If the broker cannot provide sufficient evidence of the legitimacy of the transaction or fails to respond to enquiries, the acquiring bank returns the funds to the issuing bank, which then transfers them to the customer's account. In some cases, the broker may challenge the decision of the acquiring bank and provide additional evidence, which may result in additional investigation by the issuing bank.
1. Intrusive calls at any time of the day or night. There is a known case when a fraudulent broker treated a woman in this way for several months before she transferred her money. Remember: a professional and honest broker or financial trader will never impose his services over the phone. Clients look for a good specialist on their own.
2. Calls come from a mobile or hidden number. Keep in mind that a serious brokerage company always has a single phone number - federal or local.
3. the promise of fabulous profit from invested money in a short period of time - 10-20% or more per week or month. Moreover, no broker can guarantee 100 per cent profit. Investing is always a risky activity.
4. Refusal to provide the address of the brokerage company's website. No information about it on the Internet. Or the company's website does not contain information about the company's owner, legal address, or contact information.
5. Refusal to provide information about the license or its absence. Every organization professionally carrying out operations on financial markets and with financial instruments at the expense of attracted funds is required to have a license1. You can check whether a company has a license on the website of the Central Bank of the Russian Federation.
If a broker company is registered abroad and operates without a license from the Central Bank of the Russian Federation, it is an offshore organization operating outside the legal framework of our country. After signing an agreement with such a broker, in the event of a violation of your rights, you will not be able to defend your interests on Russian territory.
6. The broker refuses to meet in the office and conclude a brokerage agreement. Offers to quickly open an account without checking your documents and assures that it is enough to register a personal account on the website.
Firstly, we provide clients with a fast and relatively easy way to get their money back without having to go through lengthy and expensive legal proceedings. This is especially important when it comes to international brokers who may be located outside the client’s jurisdiction.
Another important advantage of refunding via is the support from banks. The bank acting on the client's side is interested in protecting its clients and does everything possible to ensure a successful refund. This means that the client is not left alone with the problem, but receives help and protection from their financial institution. Banks also have the necessary resources and experience to conduct investigations and interact with other financial institutions.
In addition, the chargeback procedure through us is transparent and clearly regulated. The client is always informed about the status of their application and can track the progress of the case. This avoids uncertainty and psychological pressure associated with waiting for a decision. Clients know that their application is being considered and that they can count on support from the bank.
We also play an important role in preventing further fraud. Banks and payment systems actively cooperate with law enforcement agencies and other financial institutions to identify and block fraudsters. This makes chargeback not only a tool for returning funds, but also an important element in the fight against financial crime.
Finally, we provide a high level of consumer protection. Customers can be confident that their money is protected and that they can count on being treated fairly by the banking system. This increases the level of trust in financial institutions and contributes to safer and more transparent financial transactions.
The first step is to fill out a claim form in which the customer describes the circumstances of the disputed transaction and provides evidence to prove the fraud. The issuing bank checks the claim for compliance with all necessary requirements and forwards it to the payment system (Visa, MasterCard, etc.).
The payment system acts as an intermediary between the issuing bank and the acquiring bank that services the broker. It checks the application for compliance with the rules and forwards it to the acquiring bank that serviced the transaction. The acquiring bank, in turn, contacts the broker and requests an explanation regarding the disputed transaction.
If the broker cannot provide sufficient evidence of the legitimacy of the transaction or does not respond to inquiries, the acquiring bank returns the funds to the issuing bank, which then transfers them to the client's account. This process can take from several weeks to several months.
In some cases, the broker may challenge the acquiring bank's decision and provide additional evidence. In such situations, the issuing bank will re-examine the case and may make a final decision in favor of the client or the broker. However, in most cases, if the evidence of fraud is comprehensive and convincing, the funds will be returned to the client.
The chargeback procedure ensures a high level of consumer protection and helps increase trust in financial institutions. Clients who have used this mechanism note its effectiveness and efficiency in resolving financial disputes. Chargeback is becoming an increasingly popular tool for combating fraud in financial markets.
One of the key advantages is that there is no need for lengthy and expensive legal proceedings. The chargeback procedure allows you to get your money back without involving lawyers and paying legal costs.
Chargeback also provides customers with certain guarantees related to support from the banking system. Banks are interested in protecting their customers and actively participate in investigating fraud cases. This means that customers receive professional support and are not left alone with their problem.
In addition, chargeback is a transparent procedure in which the client is always informed about the status of their application and can track the progress of the case. This avoids the uncertainty and psychological pressure associated with waiting for a decision. Clients know that their application is being considered and that they can count on support from the bank.
Another important advantage of chargeback is its versatility. The procedure applies to various types of transactions and can be used in different situations when a customer has encountered fraud. This makes chargeback an accessible and effective tool for many victims.
Chargeback also plays an important role in preventing further fraud. Banks and payment systems actively cooperate with law enforcement agencies and other financial institutions to identify and block fraudsters. This makes chargeback not only a tool for returning funds, but also an important element in the fight against financial crime.
Finally, chargebacks provide a high level of consumer protection. Customers can be confident that their money is protected and that they can count on being treated fairly by the banking system. This increases the level of trust in financial institutions and contributes to safer and more transparent financial transactions.
