It is possible to use the protective mechanism for a refund if the service or product has not been provided for more than a year, but its popularity is relatively low. And it’s a pity, because it is possible to apply it for your own protection even in situations where the brokerage company prevents, in one way or another, the withdrawal of funds from the deposit.
For example, GoldbergTrade even aggressively reminded traders that they had not paid a “tax” in favor of the broker, equating itself with states that oblige their subjects or citizens to make such payments.
In what cases does the payment system allow the legitimacy of claims for a refund to the buyer
To have a chance to start the chargeback procedure, you need to make a payment by entering the details of a bank plastic card. This allows you to connect in the future to protect your interests the bank that issued it. The issuing bank has to do this not only because the rights of its client are violated, but because of the obligations assumed when it is included in the international payment system. And payment systems are obliged to protect the legitimate interests of ordinary owners of bank plastic.
The right to request a refund of the transferred funds is recognized by MasterCard, for example, if there are grounds provided for by the code 4853 in the system’s chargeback manual. The international payment system Visa adheres to a slightly different mechanism for the return of funds, and each basis for it is prescribed separately. The right to request the cancellation of the transaction is recognized for the buyer who paid for the goods or services with a bank plastic card, in the following cases:
- the seller’s failure to comply with the terms of the agreement;
- violation of the terms of delivery/provision;
- inconsistencies with the description;
- the impossibility of using it for its intended purpose;
- damage or inadequate quality;
- non-provision of services/non-delivery of goods;
- incompleteness of the purchase procedure …
Are international payment systems considering the possibility of a refund from a brokerage company?
Prior to 2017, neither Visa nor MasterCard, presumably, did not see the need to work out separate rules that protect the interests of persons engaged in investment activities. It was considered that the existing general provisions on procedure were sufficient. To resolve disputes arising in this area. It seems that thanks to dubious brokerage companies like GoldbergTrade, the situation has changed for the better. International payment systems had to make additions and clarifications that allow the chargeback procedure to be applied in this very specific field of activity.
Now the procedure can be applied to transactions, the purpose of which was to make investments, participate in gambling, and other similar use of monetary resources.
An important point regarding the launch of the procedure for the return of funds, which, in the opinion of their owner, are legally withheld by the seller, brokerage company, such as GoldbergTrade. It is allowed to resort to this means of protecting one’s interests not as a club that can be brandished on every occasion, but only in an extreme situation. That is, the refund procedure within the framework of the funds provided for by the rules of the international payment system must necessarily be preceded by the actions of the bank card holder to reach an agreement with the seller. Only in the case when the seller ignores the legitimate interests of the buyer, which will need to be documented, using all the possibilities of modern technology, it is possible to begin the chargeback procedure.
How can a trader whose funds are held by a brokerage company act?
In the field of investment activity, unfortunately, there are many companies, such as GoldbergTrade, which has established taxes in its favor. If you encounter problems with withdrawal, you will first have to make attempts to negotiate with the broker in order to eliminate the obstacles that have arisen. Anticipating their very likely failure, it will be necessary to resort to all possible means of recording the negotiations. To prove your right to start the refund procedure, it is permissible to refer to:
- clauses of the terms of the client agreement violated by the brokerage company. It is desirable to copy the client agreement itself and / or confirm it with a link to the site;
- correspondence and telephone conversations that are recorded;
- screenshots confirming attempts to perform certain operations in your personal account on the broker’s website.
Having collected such a documentary base, you can prepare an appeal to the issuing bank. It is possible that the bank:
- there is no employee who has the necessary experience in participating in the procedure;
- adhere to the practice of delaying the response to the received request until the time when it becomes impossible to carry out the procedure within the time frame provided for by the payment system. In most cases, 120 days are allotted for everything, therefore, having discovered the disastrous inaction of the issuing bank, you will have to document the correspondence with it in order to use it in the future to file a statement of claim in court. The defendant in such a situation will be the issuing bank that has not fulfilled the obligations arising from its participation in the payment system.
The refund procedure is a rather lengthy process, taking at least one to two months. Given that the broker does not show a desire to voluntarily reach an agreement with a trader seeking to withdraw funds from his deposit, you will have to take into account the need for repeated appeals from the issuing bank. Then the procedure can take six months. When applying to the court, we can confidently assume that twice as much time will pass before the result is achieved.
