In the case of certain purchases, such as flight tickets, orders from e-shops or accommodation service reservations, the consumer should consider which payment method to use before making the payment. Kristina Tammaru, head of the TTJA’s consumer and business advisory department, explains what to keep in mind regarding payment solutions.
Online shopping and delivery
In e-commerce, payment is usually made before the goods arrive. Payment by bank link and bank card is the most common in Estonian e-shops. For international e-shops, payment by bank card or payment intermediary services such as Paypal is the most common.
Although shopping in e-shops usually goes as expected, it may happen that the goods ordered and paid for do not arrive or the products do not correspond to what was ordered. For example, there is a wrong product in the package or a part of the order is missing, the problem can also be a product damaged or broken during transport. In such situations, where there are problems with an online store order, the first thing to do is always contact the merchant to find a solution.
If you cannot solve the problem with the merchant, there is another way to get help for purchases paid by bank card – chargeback i.e. the initiation of the recovery procedure.
The refund procedure can also be helpful in connection with various services, for example in a situation where a package trip has been purchased, but the tour operator is unable to organize the trip sold to the consumer and declares insolvency. Or for services related to monthly payments, if the subscription to the service is terminated, but the money continues to be deducted from the consumer’s account. For example, being a member of a sports club, using a movie streaming platform or a gaming environment.
Mis on chargeback perhaps a refund procedure?
The refund procedure consists of disputing the card transaction and requesting the paid amount back to the card. Chargeback rules and conditions are established by international payment card organizations such as VISA, Mastercard and others. To start the refund procedure, you must contact the bank that issued the card.
In most cases, it is easy to start the operation, and there is a special “Dispute” button in the list of card transactions in the Internet bank, or you have to find the application form for contesting a card transaction on the bank’s website. When disputing the transaction, among other things, correspondence with the merchant must be forwarded to the bank, which would prove the consumer’s independent efforts to find solutions. If it is not possible to contact the trader, this must also be noted in the return claim documents. The bank will provide information on how and where to forward the documents supporting the refund claim.
The refund process can take time and the consumer must be prepared to provide evidence to support the dispute. For example, if a solution is sought regarding a product damaged in transit for which the seller does not accept responsibility, the consumer will probably need to provide photos or videos that prove the condition of the package that arrived.
The recovery procedure must also be initiated immediately if you notice transactions on your card-related account statement that you definitely did not make. In such a case, the bank should be asked for instructions on how to close the card with the leaked data and replace it with a new one.
Some credit cards also offer a purchase guarantee or insurance, so it’s worth checking with your bank regarding its availability and terms.
Submitting an unfounded claim
Filing an unfounded refund is an action where during the procedure it becomes clear that the grounds for the refund are not met and the consumer does not have the right to initiate a refund.
For example, if the consumer claims that he has not made certain transactions or received the products ordered from the e-store and submits a refund application to the bank. During the procedure, however, it turns out that the transactions were made by a family member of the consumer who had access to authentication tools, or the e-store order was still accepted by the consumer or someone instead.
Initiating an unjustified chargeback is a paid service. If, during the procedure, the bank establishes that there were no grounds for initiating a refund, the consumer must pay the bank a one-time service fee to cover the costs of the procedure. The amount of the service fee must be fixed in the bank’s price list.
Payment intermediary services and additional protection
When paying for goods or services on the Internet, in addition to the possibility of paying by bank card, other payment methods are often displayed, in international e-shops PayPal is the most well-known to Estonian consumers. In order to apply the consumer rights offered by payment mediation services, if necessary, you should definitely read the terms of the service.
For example, similar to paying by card, PayPal also offers the possibility to get a refund in case of problems. Be it a situation where the goods ordered via PayPal do not arrive, a used item arrives instead of a new item, a counterfeit is sent to the consumer instead of a branded product, or the shipment is damaged when it reaches the consumer. In order to get your money back through PayPal in case of problems, you must strictly follow the relevant rules and adhere to the deadlines, because PayPal does not guarantee protection in the event of a delay.
That is why the consumer must first file a complaint with the merchant in the PayPal environment, and for this he has 180 days from the time of making the purchase (not receiving the goods!). If the consumer and the trader cannot reach an agreement, then within 20 days from the filing of the complaint, it must be converted into a claim to PayPal.
2024-03-06 16:19:31
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