What is a chargeback?

Sometimes an investor will pay for their security by credit card and then submit a claim to their bank for one of the reasons listed below, although rare consideration must be had for times it does arise. This is considered a chargeback.

When an investor submits a chargeback, the investment amount they were billed will automatically be pulled from the escrow account and returned to them.

Possible Reasons for a Chargeback

  • Credit not processed
  • Duplicate
  • Fraudulent
  • Product not received
  • Product unacceptable
  • Subscription canceled
  • Unrecognized

This means that if you have issued securities to them, the securities are no longer paid for.

Click here for more information on the period during which an investor can submit a chargeback and click here for what to do when a chargeback occurs.