Credit card chargeback a godsend in Kleenmaid scandal
The collapse of Kleenmaid has brought to light the dangers of buying goods from companies on a shaky financial footing, with the 4,500 customers who paid in part or in full for Kleenmaid’s products told recently that they are unlikely to see their cash again.
However, the Sydney Morning Herald reports that help may be at hand with a little-known credit card payment facility known as chargeback.
For those who pay for goods using a credit card, chargeback can be used to request that your bank to investigate if products have not been delivered.
If it resolves that you are entitled to a refund, cash will be credited into your account.
MasterCard Australia vice-president of corporate affairs Albert Naffah told the paper that the biggest chargeback victory in recent times had come with the collapse of airline Ansett.
"Customers who had booked flights on their credit cards applied for chargebacks worth millions of dollars and National Australia Bank, which was the acquirer, honoured the chargebacks," he said.
The airline was placed into administration in 2001 after suffering heavy financial blows.
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