Legal information notice: this article provides general information and isn't a substitute for advice from a qualified lawyer.
Beyond your bank’s own fraud liability process, there’s a second, parallel system that can get your money back for a fraudulent card transaction: the chargeback mechanism run by the card network itself — Visa, Mastercard, or RuPay. It’s worth understanding how this actually works, since it’s genuinely useful for certain kinds of fraud, especially where a merchant was involved.
A chargeback is a formal dispute raised through the card network’s own rules, distinct from (but running alongside) the RBI’s bank-liability framework. Your bank must complete its initial investigation within 7 working days and issue provisional credit if fraud is confirmed. The transaction is then formally disputed with the merchant’s bank, and the merchant has 45 days to respond with evidence defending the charge. Card networks generally allow disputes to be raised up to 120 days from the transaction date, though your own bank may set a shorter internal deadline for you to report.
File your dispute through your bank’s app, branch, email, or net banking — you’re initiating this with your own bank, not the merchant or the card network directly.
Your bank has 7 working days to complete its initial investigation, and if the fraud is confirmed at this stage, must issue provisional credit while the fuller chargeback process continues.
Your bank raises the chargeback through the card network’s system, and the merchant gets 45 days to respond with evidence defending the transaction as legitimate.
Visa, Mastercard, or RuPay’s specific dispute-resolution rules govern how the evidence from both sides is weighed — this is a structured, rules-based process, not a discretionary decision.
Most chargebacks reach a final resolution within 60-90 days — either the provisional credit becomes permanent, or, in disputed cases where the merchant’s evidence prevails, it can be reversed.
The chargeback mechanism is particularly useful for a specific category of fraud: card-not-present transactions where a merchant is genuinely involved — a fraudulent online purchase, a subscription you never signed up for, or a transaction where goods/services were never delivered. This is different from, say, a cash withdrawal or a peer-to-peer transfer, where there’s no merchant on the other end to dispute the charge with.
It’s worth understanding that a chargeback dispute and your RBI-framework fraud liability claim aren’t mutually exclusive — they can and often do proceed together, since they operate through genuinely different mechanisms (card network rules versus banking regulation) even though your bank is involved in both.
Keep your evidence organized specifically around what a chargeback needs: the exact transaction as it appears on your statement, any correspondence with the merchant (if you attempted direct resolution first), and a clear statement of why the charge is fraudulent or invalid — this is what actually gets weighed against the merchant’s response.
| Aspect | What Applies |
|---|---|
| Governed by | Card network rules (Visa/Mastercard/RuPay), not RBI directly |
| Best suited for | Card-not-present fraud involving a specific merchant |
| Merchant's role | Gets 45 days to respond with evidence defending the charge |
| Relationship to RBI liability claim | Can proceed in parallel — not mutually exclusive |
File your dispute with your card-issuing bank directly. Also report on cybercrime.gov.in for the fraud itself, since this is a separate, complementary process.
Filing a chargeback dispute with your bank is free — there’s no fee to raise a genuine fraud dispute.
Most chargeback disputes, especially straightforward card-not-present fraud cases, can be filed and pursued directly with your bank. A lawyer becomes useful for larger, contested amounts where the merchant’s response disputes your version of events.
Need professional legal help with this?
Find a Lawyer on VidyodayFor the complete banking liability framework running alongside this process, see our pillar guide on RBI rules on unauthorized electronic transactions. For credit card fraud more broadly, our guide on credit card fraud: report and recover covers the wider picture.
Yes — chargeback mechanisms apply to debit cards as well, through the same card network rules, since debit cards also carry a Visa/Mastercard/RuPay network affiliation.
This becomes a factual dispute the card network resolves based on the evidence both sides submit — your bank can guide you on what specific evidence strengthens your position.
The underlying process is similar, though online (card-not-present) fraud disputes often have somewhat different evidentiary standards than in-person, chip-and-PIN transaction disputes.
Mention this in your dispute — evidence of your attempt to resolve directly, and the merchant’s response (or lack of one), can support your chargeback claim.
Yes — if the merchant’s response and evidence are found to be valid by the card network, a provisional credit can be reversed, which is why maintaining strong evidence on your side matters.
This is a common, well-recognised chargeback scenario — clearly state you never authorized any recurring charge, and check whether similar unauthorized charges have recurred that also need disputing.
A chargeback dispute is between you, your bank, and the card network — it shouldn’t automatically affect any account you have with a merchant, though extremely high dispute rates could affect a merchant’s own standing with the network, not yours.
This is genuinely more difficult, since card network chargeback windows are fairly firm — report as soon as possible in any fraud situation, and consult your bank about any remaining options even past this window.
This article is for general information only and does not constitute legal advice. Chargeback outcomes depend on the specific card network’s rules and the evidence available — consult a cyber law lawyer for guidance specific to your situation.
