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
- Product not received
- Product unacceptable
- Subscription canceled
This means that if you have issued securities to them, the securities are no longer paid for.