No one is immune from fraudulent actions of a broker. In earlier articles we have already described how to distinguish an honestly operating DC from a “kitchen” broker, but even if the fact of fraud has happened (the broker refuses to withdraw money by all means), do not despair! It is still possible to return at least part of the money invested!
What is Chardback and Money Back Policy
Chardzhbek – the procedure for the cancellation of a money transfer and its return on the basis of generally accepted rules of payment systems. Initiation of chargeback is possible only if:
- deposit replenishment went through the bank (e-wallets and other replenishment methods are not taken into account);
- The maximum period for initiating the procedure is 540 days from the date of deposit replenishment, the protest period is limited to 180 days for Visa and 120 days for MasterCard.
The initiator of the chargeback is the issuing bank upon the application of the client, who makes demands to return to the bank serving the broker.
Money back policy (strictly regulated, violation may cause failure in chargeback):
1. Preliminary steps by the client:
- Close all accounts and submit a withdrawal application. After the deadlines come out, a screenshot of your personal account is made, where you can see the information about the deposit of money, and the correspondence with the broker is printed;
- sending a letter informing the broker of termination of the contract;
- request to the broker’s bank to provide a statement showing the transfer of money;
- Writing an application in the prescribed form with an indication of the transaction code (“service not provided”: 2430 for Visa and 4855 for MasterCard).
2. Preparation of documents and their notarization:
- a service agreement (on the broker’s website, it can be in electronic form with the addition that it comes into effect from the moment of deposit replenishment);
- bank statement, correspondence screenshots, the rules of the broker’s work with the client (taken from the site), etc .;
3. Within 30-60 days, if everything is arranged correctly, the money is credited. In case of refusal, you can file a complaint with the head office of the bank or the regulator, but, alas, often this does not lead to a result.
Unfortunately, both the broker and the acquiring bank can challenge chargeback (after all, they will be fined with a positive decision). Therefore, it is possible to return the money a maximum of 20% of cases, but this is already a victory! It is worth noting that about 50-70% of the deposit is returned and excluding money earned, and this is only on condition that there is money in the broker’s account and the account has not yet been arrested.
Summary. Chardbeck – although it is difficult to implement, for traders with a deposit of several thousand dollars. The USA is the only way to at least partially return the money. But still it is! And if after reading the article you still have questions, ask them in the comments, analysts of the FxCash rebate service will try to answer you as soon as possible.