3 Ways You Need To Know About Reversal of Credit Card Transactions

Reversal of credit card transactions is a lesser-known but effective method to save yourself from losing money due to unauthorised transactions. Assume you were making a payment with your credit card, but you used incorrect details. If it is to an unknown person or a merchant, you can lose money. 

However, you can contact your issuer to reverse your credit card payment, allowing you to get the funds back. Apart from that, there are many other reasons why you can opt to reverse your credit card payment. 

Read to know what is credit card payment reversal, when and how you can opt for it and more. 

What is Credit Card Payment Reversal?

Credit card companies offer this facility where you can get a refund on your credit card payment. There are many situations where you may make a payment from your credit card, which you did not authorise. In such a case, you can request your issuer to undo the payment.

Alos Read: Best way to make the Payment of Credit Card Bills

Reversal of credit card transactions is only possible after a successful payment. If the payment shows a pending status and the funds are not deducted from your account, you cannot opt for this facility. 

Why Opt for Payment Reversal?

Here are some practical situations where you can request issuers to reverse your credit card payments. 

Fraudulent Transactions

In case your credit card payment is unauthorised, you have the right to claim a reversal. This is one of the most common reasons people reverse their credit card payments.

Statement Mismatch 

After viewing your credit card statement, you can opt for this if you notice any errors in your transaction history. For example, if the payment amount is incorrect or entered twice. 

Defective Product 

Say you have made a purchase from your credit card, which is either defective or the wrong product. In case the merchant does not refund you the money, you can file for a reversal with your issuer. 

Incorrect Information 

When you rely on your credit card to make payments frequently, it is possible that you may end up making an error. Some common errors are: 

• Incorrect payment amount 
• Inaccurate merchant details 
• Incorrect delivery address 
• Using the wrong card for payment, etc. 

In all such cases, you may want to get a reversal to fix a mistake and not face financial loss. 

Automatic Payments

Say you forgot to cancel the automatic payment or are charged after cancellation; opting for reversal helps you save money. This may happen due to technical errors on behalf of the beneficiary or the bank.

How To Reverse a Credit Card Transaction

As a responsible credit cardholder, know the following ways to reverse your credit card transactions online. 

Contact Your Merchant 

Before contacting your issuer, it is better to communicate with the merchant to refund the payment. Explain the situation and request them to refund the money into the same account or cancel the request from their side. 

Cancel the Order Online 

With this option, you can cancel your order, automatically refunding your amount to your credit card. 

Contact the Issuer 

If the other options don’t work out, you can always ask your credit card provider to give you a refund. This option gives you a complete refund of your transaction amount from your issuer.

Also Read: Credit Card Smart Payment

Credit Card Payment Reversal Time

You can request a reversal up to 60 days after making the transaction. Some issuers also allow you to apply up to 180 days post-transaction. 

Once you have made the request, most issuers will give you a refund for fraudulent or unauthorised transactions within 1-2 days. However, it may take between 7 and 14 working days to reflect on your statement. 

Knowing this timeline is important so that you can make your credit card reversal as quickly as possible. For this, you must keep an eye on your credit card statement or review your transactions periodically. This will allow for only detection and resolution of your problem. 

However, one way you can minimise the risk of credit card fraud or unauthorised transactions is to keep your details secure. Therefore, the Fibe Axis Bank Credit Card is a great option that gives you an extra layer of security as India’s first numberless card.

This UPI-based card allows you to make swift credit card transactions across all the platforms through online and offline channels. In addition to that, it gives you many other perks, such as up to 3% cashback on all your transactions, fuel surcharge waivers and complimentary lounge access. 

Download the Fibe App now to apply for this lifetime-free credit card today. 

FAQs on Credit Card Payment Reversal

What happens when a credit card transaction is reversed?

With the reversal of credit card transactions, you will receive the transaction amount back into your credit card. This will restore your credit card limit. 

Can credit card companies reverse transactions?

Upon making a request, the issuer will check if it is possible. If it is a proven error, they will reverse the payment. 

How do I reverse a credit transaction?

You can ask the issuer to reverse the payment shortly after making the transaction.

How long does it take to reverse a credit card payment?

Most issuers take up to 2 days to reverse the transaction. However, it depends on the issuer’s policy and investigation process.