NEW YORK, March 18, 2020 /PRNewswire/ -- MyChargeBack, the global leader in resolving authorized online transaction disputes, advises consumers who are planning on applying for chargebacks at their banks to do so as quickly as possible due to growing concerns about how the coronavirus may impact the process.
"MyChargeBack recommends that if consumers are planning to raise disputes with their banks for goods or services not provided they should do so as soon as possible to avoid delays and disappointment," states Michael Cohen the company's Vice President of Operations. "There are several reasons why the system may soon become overloaded."
Deadlines May Be Missed
Cohen cites, for example, the anticipated rise in chargebacks as the result of cancelled vacations, cruises, hotel reservations, airfare, and conferences. Issuing banks, which first have to agree to raise the dispute in question, and acquiring banks hosting the merchant's account, may become hard-pressed to review all the requests they receive in a timely fashion. "Should that happen, cardholders may inadvertently miss the deadlines set by the card companies for applying for their chargebacks." Cohen explains.
In fact, the virus has already affected the credit card industry itself. Mastercard, for example, was forced to close its office in Sao Paulo and an annex at its global headquarters in Purchase, New York after employees in those locations discovered they were infected. Should even one employee at an issuing or acquiring bank be identified as a coronavirus carrier, they too might have to follow suit.
Merchants Can Disappear
Another consideration is that the merchant may rely on a continuous cash flow to continue operating. Should the virus continue to spread, these merchants will be forced to temporarily close their accounts or shut down completely. Should cardholders delay raising their disputes, they may discover that there is nothing their banks can do. "Consumers may experience more difficulty retrieving funds from a depleted bank account or a merchant who has gone out of business and disappeared," Cohen notes.
MyChargeBack, therefore, advises consumers who have paid for goods or services that were not received as ordered, or cannot be utilized due to the coronavirus pandemic, that it is in their best interest to initiate their chargebacks at the earliest possible date. "These goods and services also include untypical transactions, such as tickets to sporting events that are now cancelled, expenses for weddings that cannot be held due to limitations placed on the number of people allowed to gather at the same facility and, of course, foreign travel and accommodations," Cohen adds. "The message we are communicating to all cardholders, regardless they wish to work with us or initiate disputes on their own, is that a delay is not in the consumer's interest."
MyChargeBack.com is a global leader in fund recovery services. Working with over 750 banks worldwide, it has retrieved millions of dollars for clients in more than 150 countries. These cases typically involve authorized card-not-present transactions for goods or services that were not delivered as contracted. Founded in 2016, MyChargeBack is owned and operated by Cactil LLC, a Delaware corporation.
Reuben Eliaz, Media Relations Manager