Payments
Chargeback on credit cards: chargeback after fraud
· Manfred Kühn
The chargeback process can reverse card payments - but it is not a legal right. How it works, what its limits are and what rights exist alongside it.
Overview
What this is about
Credit card data can fall into the wrong hands in many ways: through phishing sites, data leaks from retailers, malware, theft of the card or the card being stored in a digital wallet on someone else's smartphone. Those affected often only notice the abuse on the billing - sometimes as a single large entry, sometimes as a series of smaller amounts.
Legally, the same principles apply to card payments as to other payment transactions. If you have not authorized a transaction, the card issuer must generally refund the amount in accordance with Section 675u of the German Civil Code (BGB). Above all, he can counter that you have grossly negligently violated your duty of care - for example when handling the card, PIN or release app.
There is also the so-called chargeback. This is not a legal claim, but rather a complaint procedure in accordance with the rules of the card organizations that the card-issuing bank initiates. It can also help with payments that you made yourself, such as if a retailer doesn't deliver. Whether this applies in your case depends on the respective rules and deadlines.
Typical situations and warning signs
- Your statement will show sales from retailers you have never purchased from.
- Several small debits of unknown origin follow each other in quick succession - often a test of whether the card is working.
- You entered card details on a site that was later found to be fake.
- You shared a release code or confirmed a request in the app, and then your card was deposited in a third-party digital wallet.
- Your card has been stolen or lost and transactions have been made with it.
- A merchant repeatedly charges you for a subscription that you have not subscribed to.
- The card issuer refuses the refund because the transactions were released with strong authentication.
Immediate steps
What you can do now
These steps make sense in most cases – regardless of whether you instruct us.
Have the card blocked
Have the card blocked immediately – with the card issuer or via the German blocking hotline 116 116. Note the date and time; as a rule, you are not liable for transactions made after the block was reported.
Dispute the transactions and demand a refund
Dispute the transactions concerned without undue delay and in writing with the card issuer and demand a refund. Also ask expressly for a chargeback procedure to be initiated.
Check your statements in full
Go through the transactions of the last few months and mark all entries you cannot account for. Small amounts are relevant too.
Secure evidence and change your login details
Save suspicious emails, text messages and screenshots of fake pages. Change passwords for retailer accounts and payment services where the card was stored, and check on which devices the card is registered digitally.
Report the matter to the police
File a report with the police. Many card issuers require the case reference number to process the dispute.
Unsure what to do first in your case?
Legal assessment
Possible areas of review
Authorisation of the card transactions
We examine whether the transactions were made with your consent. For unauthorised transactions, a refund claim under Section 675u of the German Civil Code (BGB) may be available.
The defence of gross negligence
Under Section 675v BGB, the card issuer may rely on a grossly negligent breach of duty, for example in the handling of the PIN or approval codes. Whether the allegation holds depends on the specific course of events and must be proven by the card issuer.
Strong customer authentication
If online payments or the storing of the card in a digital wallet were permitted without strong customer authentication, the defence of gross negligence may be excluded under Section 675v(4) BGB. We examine which procedure was actually used.
Chargeback procedure
We examine whether a chargeback under the rules of the card scheme may be available, which dispute reason fits and whether the applicable deadlines are still running. There is no entitlement to a successful chargeback; the extent to which the bank must initiate a procedure with prospects of success depends on the individual case.
Notification and deadlines
Unauthorised transactions must be reported without undue delay after you become aware of them. Under Section 676b BGB, claims are generally excluded if notification is not given at the latest 13 months after the debit.
Who may be liable
Possible opposing parties
Card issuer
Against the bank or institution that issued your card, a refund claim may be available for unauthorised transactions. The chargeback procedure is also initiated there.
Retailer or payee
If a retailer debited your card without a contractual basis or failed to deliver, repayment claims against it may be available. In the case of dubious providers abroad, however, enforcement is often difficult.
The perpetrators
Claims for damages against the perpetrators exist in principle, but can only be enforced if the investigations lead to an identifiable person.
Whether and against whom claims actually exist depends on the individual case and can only be assessed after reviewing the documents.
Preserve evidence
Documents you should keep
Do not delete anything – not even out of anger or shame. Your account of events is enough for the initial enquiry; documents can be submitted later.
- Credit card statements with disputed transactions marked
- Complaint to the card issuer and their response letter
- Confirmation of card blocking with date and time
- Phishing messages and screenshots of fake pages
- Notifications about releases, new devices or wallet registrations
- Order documents and correspondence with the dealer
- Issuer's card conditions
- Criminal complaint and file number
Our approach
How we handle your case
Step 1: Describe your case
Using the form, you describe to us in a few minutes what happened. You can submit documents later.
Step 2: Legal assessment
We review your details, classify the facts and examine against whom claims may be available.
Step 3: Strategy
You receive an honest assessment of prospects, risks and costs – and decide for yourself whether to instruct us.
Step 4: Representation
We implement the agreed strategy: towards banks, payment service providers and other parties involved, and in court if necessary.
FAQ
Frequently asked questions about Credit card fraud
General guidance – it does not replace advice on your individual case.
That depends on the individual case. For unauthorised card transactions, the law generally provides for a refund, provided you cannot be accused of gross negligence. We cannot give a guarantee – we examine how the prospects are to be assessed in your situation.
A chargeback is a reversal procedure under the rules of the card schemes, initiated by your card-issuing bank. It is not a statutory entitlement and is subject to its own reasons and deadlines. Whether it comes into consideration in your case is something we examine on the basis of the transactions and the bank's response.
The statement that a transaction was approved via app or code does not in itself establish gross negligence. The bank must set out and prove the circumstances from which it derives the allegation. We examine whether the refusal is legally tenable.
Before the block is reported, you may have to bear up to €50, and in the case of gross negligence possibly more. As a rule, you are not liable for transactions made after the block was reported. Many card terms and conditions also provide for more favourable rules.
The initial assessment of your enquiry is free of charge. We inform you transparently in advance about all further costs before you decide whether to instruct us.
Knowledge centre
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Case review
Tell us what happened.
We will assess which claims may be available and which next steps may make sense.
Your details are treated in confidence. An enquiry does not yet establish a client relationship.