On Monday I deposited $3000 on account for future services with a business, using my VISA debit card. Subsequently the business suffered a very unfortunate incident that could very well lead to it going bust. I want to support the business during this tough time for them, so I don’t want to request a refund now if I can avoid it. If they do end up going under, will I be able to claim my money back through VISA / my bank? I should know within a couple of weeks whether or not the business will continue running.
You can charge back at anytime. You have to have a reason to charge it back though.
What happens with a charge back is you make your claim. The credit card company send the claim to the business and removes the charge (temporarily) from your bill. The business will get a list of things it must provide to the credit card company. If the business can provide this you lose. If it doesn’t provide them, or fails to answer in a specific amount of time you win.
You have only a certain amount of time, (it used to be 60 days, they may have changed this) to dispute the charge.
In reality you’d be better of getting a refund now. If you have to support this business do so with lessor amounts.
As Markxxx detailed the specifics of disputing the charge with your credit card company, if that were to not be substantiated and the company does file for bankruptcy, then you become a general creditor and will have to wait until the court satisfies your claim if ever.
At which point I would assume you would have a more than valid claim for a refund as the services were never delivered nor will they ever be.
What kind of services? Is it possible that the failing business might be picked up by a competitor and continue to provide those services?
A debit card? Then you’re an unsecured creditor. If they go bust, you’re likely SOL.
If ever there was a time to ask a lawyer, this is it. Do not count on the advice of a bunch of random people on an Internet message board. Laws vary from jurisdiction to jurisdiction, the fact that you used a debit card rather than credit card matters, it will make a difference whether you’ve received any of the services by the time you file for the chargeback, and so on.
This is one of the reasons we recommend against asking for specific legal advice here.
Depends on how the card was used. If it was used as a VISA card then you can still use the chargeback process. If it was used with a PIN number like an ATM card then it’s like giving them cash.
Get your money ASAP. If you can’t, then get a lawyer.
As Wombat implied, $3,000 isn’t something that should be left to internet conjecture, regardless of the quality of the posters on the board (ie, no offense guys).
This isn’t legal advice.
I’m thinking that if you charge it back before the end of the month, they will still actually have the money to give you back, whereas if you wait til they go under, VISA will have no way of shaking them down for the money. The only way you’ll get satisfaction is if VISA pays you out of their own pockets as though the money were insured.
Part of why I asked what kind of services is because if it’s something contracted, trying to reverse the charges could very well land you in court. If someone “changes their mind” 3 weeks after I sign a 1 year service agreement, my plans specifically state that the service plan is not refundable because it reflects a significant discount on our normal rates and my scheduling and hiring may be based in part on that. If hire another guy because of a couple new contracts one bailing now means I went and invested time and money in setting up coverage that is now wasted because the customer breached the contract.