What Do I Do With Chargebacks?

One of the questions we are often asked in regards to past due accounts is, “If the credit card company supported a chargeback, can I still collect?” The short answer is “Yes.” For more details, keep reading.

Customer service and the credit card company

Remember that the debtor is also the credit card company’s client. Credit card companies are (or should be) quick to respond to calls from clients who report fraudulent actions on their account. The trouble you encounter when trying to collect a debt is two-fold. First of all, the credit card company is often trying to make a decision about a chargeback based on a he said-she said situation. When push comes to shove, they will stand by their customer in the spirit of good customer service. Secondly, customers of yours who instigates a chargeback procedure to avoid paying a debt have already shown themselves to be dishonest.


While the credit card company may disclose policies stating that proper documentation is required for a chargeback request, when it comes to fraud or being dissatisfied with a product or services, a debtor has no documentation, only a testimony. This goes back to the he said-she said situation mentioned in the previous paragraph.

Credit card companies and the law

Regardless of how it may seem, a credit card company does not have the final say in the manner of an outstanding debt. Ultimately, their company is a third-party business that wants to act in the best interest of its shareholders. Losing customers is not looked upon favorably. Debt recovery lawyers understand the in’s and out’s of such financial triangles (you, the debtor and the credit card company). When push comes to shove, not paying for products or services falls under the category of theft, and credit card companies have no jurisdiction.


Not all debtors are manipulative. Some are forgetful, and others struggle to make ends meet. However, when a debtor begins tactics like initiating a chargeback with their credit card company, you can be fairly confident they are trying their best to work the system and get out of ever paying what they owe you. If they don’t pay, then either the credit card company swallows the loss or your company does. Of course the credit card company would rather it be you. But the fact of the matter is that neither of you should have to.

Debtors may use a chargeback as justification for not paying their debts. That doesn’t mean you have to kiss those funds good-bye. Let our team of professionals work for you to resolve the issue. Credit card companies are not the enemy. In fact, if any company understands the frustration of outstanding debts, it would be them. They are trying to run a business, too. Let the experts navigate the negotiations and legalities for you. You’ll sleep better, and you’ll be able to spend your time focusing on customers who do pay.

By |2017-05-10T01:54:17+00:00September 13th, 2012|Blog|0 Comments

About the Author:

Graduated from University of Utah - business degree 1990. Served in US Army as an interrogator / linguist, then as a tactical intelligence officer - Military Intelligence 1986-1990. Managed Western US sales operations for NY based collection agency 1990-1992. Founded Direct Recovery Associates, Inc. 1992-present