How Does Chargeback Work in Spain?
You may be familiar with using chargeback in your home country – when a card transaction is reversed – but do you know how it works in Spain? We take you through the main points.
Chargeback – the basics
First of all it’s a good idea to know what a chargeback is called in Spain. The term you’ll need is: retroceso de cargo.
Chargebacks can be requested when you’ve used your debit or credit card to make a payment and the goods or services either haven’t been delivery or aren’t what you ordered. This applies to both payments made online and in physical stores.
Chargeback can also be used when a company has ceased trading. This could be the case if, for example it’s filed for bankruptcy or temporary receivership.
However, the important thing to know is that in Spain chargeback isn’t automatic. You need to follow the joint procedure set out by the banking sector and card companies in order to try and get your money back.
What’s the procedure?
First get in touch with the supplier where you made the payment (if they are still trading). Ask the company for a refund which should be provided through the same means of payment (your card). If you don’t receive a satisfactory solution, your next step will be to speak with your card provider to see if they can help. Normally your card provider will be your bank, however in some cases it may be a different financial entity.
In both cases you should present your claim in writing by email or burofax (official communication). Include full details about the amount, date, and details of the dispute.
Your bank will then try and get in touch with the company in order for you to recover your money.
What you also need to know
Chargeback is not a legal right in Spain, in other words you’re not guaranteed that you will receive all or any of your money. However, it’s often the case that companies will be more inclined to provide your bank with a solution rather than when you try to recover your money yourself.
When buying online, don’t forget about the cooling-off period for your purchases as this could come in useful. There’s full information in our dedicated article here.