You purchase a product, but it doesn’t work or you don’t even get it. So you open a chargeback. How are banks able to just claw back the money you’ve sent?
In: Economics
The vendor gets money for card purchases at regular intervals, along with a statement document specifying each purchase and the fees involved. Daily, weekly, biweekly or monthly depending on volume, card type and desired fee for each purchase. All regulated in their contract.
What happens if you do a chargeback is that the income they already have received (or was scheduled to receive) for your purchase is subtracted (or cancelled) from income the vendor is expecting to receive on their next statement.
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