Credit card payment cancellation

Credit card payment cancellation

Although many millions of consumers today use a credit card, many consumers still have some concerns about the security of a credit card. For example, what can happen if the credit card is stolen or if it is misused in some other way? In general, the credit card payment method has become a relatively secure payment method. A few years ago, for example, it was still the case that credit card payments were considered “irreversible” by a merchant. This is no longer the case today. The cardholder has the right to cancel an unauthorised credit card payment by reversing the transaction.

The 8 weeks deadline

It is therefore possible to reverse or cancel a credit card payment. But only for one reason: due to an objection by the credit card owner due to unauthorized debiting. For example, the bank cannot usually return the payment due to a lack of funds in the account, as is the case with “normal” direct debit. The chargeback of a direct debit due to a credit card payment is known as “chargeback”. The cardholder has a certain period of time from the debit to the account to initiate the chargeback. This period is set by law at 8 weeks. The possibility of a charge-back ensures that the customer will not suffer any damage in the event of unauthorised payments with his credit card, even with credit card payments. By the way, this option only exists for cashless payments. If, for example, the credit card has been stolen and the “perpetrators” have also obtained the PIN and are withdrawing cash at an ATM, these debits cannot be returned. Even if the debit is made as a direct debit, as in the case of cashless payments.

Damage limitation

In such cases, however, the customer is only liable for the damage with a manageable own contribution. The reason for the reversal of a debit entry due to a credit card payment is not always theft or obvious misuse. For example, there is certainly more often the situation that you pay something on the Internet with the credit card and the merchant then can not deliver the ordered goods in a reasonable time. Here, too, the chargeback of the payment already made by credit card can be arranged. If, by the way, there is a deliberately abusive debit, you should also immediately report the charge back to the police. Credit card fraud has become a relatively serious crime in Germany and must be punished in any case.

How to cancel a credit card payment

Credit cards are also considered to be a secure means of payment because unjustifiably debited amounts can be cancelled quite easily. Illegal debits do not only include transfers that you have not initiated yourself. You can also have amounts that have been booked twice or amounts that are too high charged back.

• If you cannot trace a card payment, you should act promptly. The legal deadline for a chargeback is eight weeks.
• After that, cancellation is only possible on a goodwill basis of the card provider. You will then no longer have a legal claim to this.
• You should check your credit card statement regularly to ensure that the deadline does not expire. This is the only way to detect illegal debits in good time.
• If you wish to cancel a debit, please contact your credit card provider. The easiest way is to pick up the phone, but e-mail is also an option.
  In both cases, your employees will send you a special form that you must fill out.
• Some credit card providers also offer online banking access. If this is the case, you can also cancel a booking online.
• If you are not sure whether someone has misused your credit card, you should consider blocking it.