The coronavirus pandemic (COVID-19) is having a substantial impact on our everyday lives & how we pay for goods and services, from making more purchases online to comprehending how best to deal with disrupted travel bookings.
To help our cardholders during this time of uncertainty, we wanted to highlight options available for disputed transactions made with your Visa card, namely chargebacks. As well as broader tips to give a degree of clarity during ever changing circumstances.
A chargeback is a way for you to attempt to reclaim your money back when you do not get the goods or services you paid for, including if the retailer or supplier has gone out of business. The bank that issued your card attempts to reclaim the money from the retailer’s bank on your behalf.
Chargebacks are not a legal right, but if you have paid with a Visa debit or credit card, you can speak to the bank that issued your card about whether this option is available, and they can then put in a request to the retailer’s bank.
To pursue a chargeback claim, you must have first tried to resolve your dispute with the seller. If you are unsuccessful, chargeback may then allow your issuer to provide you with a refund in a number of circumstances, including:
If you do not get the goods or services you paid for, including if the company has gone out of business
If goods or services turned out to be faulty, counterfeit or defective (you will need to return the goods in order to get a refund in this case)
If you are charged the wrong amount, or charged twice by mistake
If you are charged for a repeat payment after cancelling a subscription
Given the speed of the COVID-19 outbreak and ever-changing scenarios, there has been an unprecedented level of uncertainty for those with trips already booked. As a result, below we have prepared guidance to help make sense of some of the options available for you, if your travel plans have been disrupted:
In the first instance, you should always contact your airline, hotel or travel agent. They will inform of you their policies in place in relation to said cancellation.
If this for one reason or another is unsuccessful, and you booked with a Visa card, there is a potential secondary option. This is where a chargeback process described above could help.
Your airline or tour operator should always be your first point of contact. Many are continuously monitoring the COVID-19 situation, and have already cancelled flights and holidays, in which case you may be offered refunds, or alternative dates if you decide to keep your booking.
Whilst your policyholder will ultimately decide this, you are more likely to be covered if you bought travel insurance before COVID-19 became a known event. Thoroughly review your policy terms and conditions, and be sure you know of any add-ons you purchased, before getting in touch with your provider.
If you had bought Travel insurance before any COVID-19 related Foreign and Commonwealth Office (FCO) advisory was in place, insurers may cover you. Please note that the insurance claims process will also depend on timing of your travel. If you have booked travel to a currently banned destination for later in the year, it is likely you will need to wait for the hotel / airline / travel agent to decide whether to cancel the trip, before you can start a claim or refund process.
If you did not specifically buy travel insurance, it may be worth checking whether this benefit came with your bank account. Travel insurance can sometimes be included as part of your account.
The COVID-19 pandemic is creating a situation that is changing daily, if not hourly at present time. With this in mind, it is important to take guidance from the relevant outlets. Here are some suggested websites to help you with your decision:
Local government travel pages provide official guidance on travel restrictions and rulings in the current situation.
The World Health Organization provides information on the actions & precautions that should be taken, as well as the latest updates on the COVID-19 pandemic.
To get the global picture, and understand each countries current travel advice, the IATA have provided an international summary for all current restrictions in place.
