An unauthorized transaction is fraud. If you lose your card or it’s stolen, any purchase that’s made with it from that point on is an unauthorized transaction. If a merchant swiped your card twice -- even inadvertently -- that’s an unauthorized transaction. Someone using your card to make a transaction without your expressed permission is committing fraud, pure and simple. Fraud is easy to prove, so banks are swift in providing chargebacks when it occurs. Since fraud is commonplace, they know how to deal with it. But disputes involving authorized transactions for goods or services can be complex, and banks may not be as familiar with the nuances, which puts the consumer at a relative disadvantage.
Authorized transactions, of course, are those that took place with your prior approval. But there are two types of authorized transactions, and that has an impact on the availability of chargebacks.
In this podcast, Eli Waldman, MyChargeBack's Director of Recovery Services, will walk you through the challenges of the chargeback process and explain what the two types of authorized transactions are.