Card Payments - Part 3 (Chargeback Life Cycle)
Image Courtesy:https://paytechlaw.com/ Recap, from the previous article: Use Case #1. Neeraj used his AXIS Bank Credit Card at Big Bazar for INR 100. The Transaction gets authorized and Neeraj received the Product or Service. #2. Issuer deducts the INR 100 from the credit limit, subtracts INR 2 as Interchange Fee and transfer the INR 98 to the Mastercard. From this INR 2, some part goes to the Mastercard, and some are retained by the Issuing Bank as per agreement. #3. Mastercard transfers this INR 98 to the Big Bazar’s Bank i.e., HDFC Bank. #4. The HDFC Bank deduct the MDR of INR 0.50 and transfers the INR 97.50 to the Merchant’s Bank Account. What will happen if Neeraj claims that he has not received the Product or Service for which he has paid INR 100 to the Big Bazar. We will see this in the next article of Chargeback Lifecycle. -------------------------------------------------------------------------------------------------------------------------...
