Bank unable to process chargeback request for binary trading transactions

Lee asked the bank to process a chargeback request for his Visa card after signing up for an online binary trading service that he believed was an investment and brokerage company. He lost $9284. A year after signing up he asked his bank to chargeback the transaction because he thought the money was not used in the way he intended but kept by the company who tricked him into believing he was trading when he was not. The bank declined his request.
September 2019

Our investigation

We considered whether the bank acted in line with the card provider’s regulations for both the type of transaction and the required timeframes for seeking a chargeback.

At the time, Visa had limited grounds to chargeback a transaction based on misrepresentation. Lee’s claim didn’t fall within these limited grounds. Although Lee thought the time frame for disputing transactions should start from when he started to suspect it was a simulation, Visa told us it started from the expected date of the service, which was the time when Lee transferred funds to the trading account.


At our request, the bank attempted a ‘good faith collection’ chargeback request on Lee’s behalf, however this was unsuccessful. We explained to Lee how the Visa rules applied to his case and he withdrew his complaint.

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