When Can Consumers Legitimately Use Chargebacks?

Nowadays, credit cards are such an ubiquitous part of life that many users do not even realize that they have chargeback protection. Those who do, often misunderstand how chargeback protection is supposed to work. They do not understand what is not - and what is a chargeback situation.
 
For example, consumers who have been victims of identity theft have every right to make a chargeback when fraudulent purchases are made. Cardholders should contact the bank immediately, both to recover stolen money and to prevent additional losses.
It is important to note, however, that this is the only situation where the consumer should call the Bank first; in all other cases, the cardholder must communicate directly with the merchant.
 
And, of course, the aim is to solve the problem without the banks interfering at all. Sometimes the perceived fraud can be an accident. Perhaps the consumer has forgotten to make the purchase or the merchant has made an innocent mistake. Perhaps the situation can be quickly and easily resolved to everyone's satisfaction. In addition, although many consumers are unaware of this, a refund usually returns the money to the consumer's account much more quickly than a chargeback.

 
If the trader is unable - or unwilling - to work towards an amicable solution, a chargeback may be appropriate. But even if a customer is dissatisfied with a purchase, simply filing a chargeback without first requesting a traditional refund is the equivalent of cyber shoplifting.
 
The reason is that when a chargeback is filed, the cardholder keeps the item purchased and is reimbursed for the cost of the item; essentially, the merchant has to pay twice for the same item or service. Legitimately, consumers are "obliged" to first ask the merchant for a traditional return/refund ... and should only make a chargeback in extreme situations. Otherwise, the consumer will take something for free - the very definition of theft.
 
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