As much as 10% of all POS transactions get declined due to one reason or the other. Normally, the customer gets automatic reversal of their money after a receipt is printed within 24 hours, or at the latest, within 5-7 working days.
However, in rare cases, it can happen that a customer does not get a reversal several weeks after the POS transaction was declined and the amount deducted from their accounts and they did not receive merchandise or the service they paid for because the POS receipt said transaction declined.
This article is a guide on how to properly log a complain with your bank and get your money back when you have a dispute with a merchant over a declined transaction that happened on their POS machine.
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.
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.
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.