Chargeback from PayPal

PayPal is the largest debit electronic payment system, which allows customers to pay bills, send and receive money transfers. For Russian users PayPal became available in October 2011. You can visit the PayPal site at https://www.paypal.com/.

If you made a payment using PayPal, you can request a refund using the buyer protection program of this payment system. Before you do so, however, you should check the manual to see if your specific situation qualifies for a PayPal refund.

There are several reasons to request a refund:

1. Unauthorized payment by customer's card.
2. Items not received paid for.
3. Errors in processing the transaction.
4. Item does not match the description.

PayPal's Buyer Protection Program provides the opportunity to resolve a dispute between the seller and the buyer, but the time limit for disputing the transaction is 180 days. If you didn't manage to report the problem within the deadline, you can apply for a chargeback.

Now let's look at how a chargeback works with MasterCard.

MasterCard Worldwide or MasterCard Inc. - is an international payment system founded in 1966. It unites 22 thousand financial institutions in 210 countries. The main competitor of MasterCard is Visa. The company's headquarters is located in New York, USA. MasterCard has a global market share of 20%, and 35% in Russia, with a total of 80 million cards issued. Visit the MasterCard website at www.mastercard.com.

MasterCard reported in May 2018 that the number of referrals from customers of illicit brokerage firms had increased, and forex companies were identified as a separate category of "Business Risk Assessment and Mitigation" (BRAM) in a December 13, 2018 update. Code 6211 is used to designate such companies, which has changed the approach to the chargeback process.

The most common question is: is it possible to get a refund on MasterCard? The answer is yes, it is possible. However, the Chargeback guide from December 13, 2018 is only available in English, which creates problems for Russian-speaking users.MasterCard uses the code 4855 (Goods and Services Not Provided) to begin the chargeback procedure. The terms and codes are largely similar to the Visa chargeback procedure.

With code 4855, the challenge period is 120 days from the expected date of service, and the blocking period is 540 days from the date of the transaction. After this period expires, the chargeback procedure becomes unavailable.If the cardholder contacts the issuer and claims that the goods or services are not as described, defective or were not provided, you can file a chargeback claim.It is worth noting that chargebacks do not apply to transactions related to gambling, investments and similar purposes. If your purpose was to invest for profit, MasterCard will not accept such transactions. Therefore, you should prove that your actions were not investment-related. Sometimes brokers will also block accounts by refusing to provide services. Having reliable proof greatly increases your chances of success in the chargeback process.

There are different categories of disputes for the Visa chargeback procedure:

1. Fraud: The cardholder claims fraud, such as an unauthorized transaction.
2. Authorization Problems: There are problems with payment authorization, for example, double debit.
3. Processing Errors: Related to errors in transaction processing, such as wrong amount deducted or wrong item.
4. Consumer Disputes: Includes a variety of consumer claims, including misrepresentation or misrepresentation of a product or service.

There are specific dispute codes and deadlines for each category of dispute. Timelines can range from 120 days to 540 days from the transaction date, depending on the type of dispute. It's also worth noting that it's not possible to go directly to Visa IPS, and the chargeback procedure must be initiated through your Issuing Bank.

For a successful chargeback, it's important to have reliable evidence and provide information about the broker, licensing authorities, as well as your bank and Visa regulations. Chargeback applications and documents are usually required in English.

If you encounter a situation where brokerage companies refuse to allow withdrawals or misrepresent information, you should contact your Issuing Bank and ask for detailed information about the Visa Chargeback procedure.