What is a chargeback?

A chargeback happens when you inform your bank, credit card company or PayPal that you dispute a payment made by them on your behalf. In the U.S. chargeback reversals for debit cards are governed by Regulation E of the Electronic Fund Transfer Act. Chargeback reversal for credit cards is governed by Regulation Z of the Truth in Lending Act.

Cardholders can only legitimately dispute a charge when they’re the victim of true fraud or when they didn’t get the product or service they paid but the merchant is unresponsive.

If a fraudulent purchase has been made with your credit card, please email us at support@cloudhq.net.

What happens when I initiate a chargeback?

Filing a chargeback against cloudHQ is a violation of our Terms of Service. We understand that mistakes can happen and we will always try reach out and email you to withdraw the dispute and ask for a refund.

In case that dispute is not lifted, cloudHQ might permanently suspend of any associated accounts or IP addresses. Any suspected fraudulent, abusive, or illegal activity, such as submitting an unfounded chargeback, will be grounds for terminating your account.

What is friendly fraud when friendly fraud becomes criminal chargeback fraud

Friendly fraud occurs when a customer makes a purchase with a credit or debit card and then disputes the charge with their bank, despite the fact that they don’t have a legitimate reason to do so. Friendly fraud is also known as chargeback fraud.

Many users who do chargeback fraud think that what they’re doing is minor and inconsequential, but it is fraud by any reasonable definition. In case of friendly fraud, cloudHQ might decide to pursue a civil or criminal case against the person who disputed the charges. The amount owned might be sold to collection agency.