What is a chargeback scheme?
A chargeback is way of getting your money refunded for something that you purchased with your prepaid card. Visa and Mastercard offer this consumer protection scheme to their prepaid cardholders for purchases where the good is faulty, not delivered or the company you bought the good from has gone bankrupt. There is no minimum or maximum value of the good in order to receive a chargeback.
How can I make a claim?
In order to make a claim on the chargeback scheme you must submit your claim within 120 days of purchase of the good. Your bank will then guide you through the process of contacting the supplier’s bank to get a refund. If you are unsuccessful in pursuing a refund through the chargeback scheme then you can seek free advice from the Financial Ombudsman.
This protection offered to prepaid customers is very similar to the Section 75 scheme offered to normal credit card customers. The main difference is that the price of the good purchased has to be worth between £100 and £30,000 whereas a prepaid card doesn’t have any card restrictions.