How to log a POS transaction declined cashback dispute

As much as 10% of all POS transactions get declined due to one reason or the other. Typically, customers experience an automatic reversal of funds within 24 hours after a declined transaction, or at the latest, within 5-7 working days upon receiving a printed receipt.

Yet, there exist exceptional cases where customers find themselves waiting for weeks without the reversal, especially when a declined transaction results in a deduction from their accounts. This situation becomes more critical when the customer neither receives the intended merchandise nor the service paid for, all due to a POS receipt stating a transaction decline.

This article serves as a comprehensive guide, offering insights into the proper procedures for logging a complaint with your bank. Learn how to navigate and resolve disputes with merchants over declined transactions that occurred on their POS machines, ensuring you reclaim your funds effectively.

How POS transaction declined happens

When you make a payment through a (Point Of Sale machine) POS terminal, money is deducted from your bank account and your account is updated with your new balance, a similar process is done on your merchants account with money added to their balance. This process is done through a system known as the Nigeria Inter-Bank Switching System, NIBSS. The NIBSS settles millions of transactions per second and some of those transactions are not completed, mostly due to network downtime on one or both banks.

When a transaction is not completed, the money is automatically returned to the customer’s account and they have to initiate the transaction all over again. This usually leads to cash reversal within 7 days. However, it can happen that the transaction was not completed at the moment with a transaction declined receipt printed but later completed and the transaction marked as approved on the system.

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This can lead to a dispute between customers and merchants as merchants are only obligated to release merchandise when an approved receipt is printed in the first instance. Once the transaction is initially marked as declined, even if it is later approved, the customer can only get their money back by filing a cashback complaint with their bank.

How to log a POS transaction declined cashback complaint

When you have a POS transaction that you did not receive merchandise or service for, the only way to get your money back is to fillout a chargeback form. The POS transaction was declined but the amount was deducted with your account debited. Most merchants will not refund you even after your bank has investigated the transaction and gave you a copy of the transaction journal that shows that your money is in the merchant’s account.

A bank chargeback form is a form bank customers can use to log a dispute complaint between them and on which ever channel they use their ATM cards, be it web, POS or ATM. A chargeback form can be used to raise all sorts of transaction complaints including receiving defective or incomplete merchandise, not receiving the goods and services paid for, receiving incomplete cash from the ATM, etc.

Firstbank POS/ATM 
chargeback form

To log a POS transaction declined cashback complaint, simply walk in to any of your bank’s branches and ask for a cashback form. You should have all receipts and other necessary proofs documented.

Requirements to log a transaction cashback complaint

Filing a successful POS transaction cashback complaint can be a very lengthy process. It is important to file the complaint timely and properly to increase the chances of success.

  • Cashback complaint can only be filed at your bank where you have an account. Your merchant’s bank will not respond to any complaint filed against their customer. Your bank will send your merchant’s bank a complaint on your behalf.
  • Cashback complaint should be filed within 120 days from the day of the disputed transaction. Although, extension can be granted on request.
  • The original POS receipts and other supporting documents should be attached to your cashback form while submitting your complaint at the bank.
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Ibrahim Ismail

A passionate and highly skilled individual who has seamlessly blended the worlds of statistics, technology, and finance.

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