How to Cancel an Online Payment?

With the growing popularity of online shopping, payment systems, as well as cancellation and refund processes, have become important topics for consumers. After purchasing with just a few clicks, incorrect product delivery, a payment error, or a change of mind may necessitate canceling the online payment or requesting a refund. At this point, consumers must be aware of their rights and understand how these processes work. In this article, we answer the following questions: how do online payment systems work, which types of payments can be canceled, what are the steps for canceling payments via banks and e-commerce sites, and how do refund and chargeback (dispute) processes work?

 

How do online payment systems work?

When purchasing a product or service online, online payment is typically used. The process begins when the customer confirms the shopping cart created on the e-commerce site and selects one of the payment methods on the checkout page, such as a credit card, debit card, digital wallet, or wire transfer. The entered payment information is encrypted for security purposes and sent to the payment gateway. The gateway converts this information into a format that the payment processor can interpret and forwards it. The payment processor then sends the information to a card network such as Visa or Mastercard to verify the transaction. After the card network forwards the transaction to the bank, the bank verifies that there are sufficient funds in the customer’s account and assesses the security of the transaction. Once the verification is complete, the bank sends an approval or rejection response back to the payment processor. The processor relays the result to the payment gateway, which in turn notifies both the customer and the merchant. If the transaction is approved, the merchant will begin processing the order. Once the entire process is completed, confirmed transactions are usually sent to the bank in a batch at the end of the day, and the total amount is transferred to the merchant’s account.

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What types of payments can be canceled?

Various payment methods are available for online payments. Whether a transaction can be canceled depends on the payment method, the transaction status, and the policies of the involved parties. Therefore, before making any payment, we recommend that you review the cancellation and refund policies of the relevant service provider or seller. The main types of payments that can be canceled are as follows:

Credit card and virtual POS transactions

If you made your online purchase via credit card or virtual POS and the transaction is still pending (in the authorization stage), you can usually cancel it. You can call your bank and request the cancellation of the pending transaction. However, if the transaction is already approved, the cancellation must be initiated by the seller. In this case, please get in touch with the seller and request a refund. Once the refund process is completed, the amount will generally be reflected on your card within 7–14 business days.

Bank transfers and EFT transactions

If the recipient has not yet received the money sent via bank transfer or EFT, you can call your bank and request the cancellation of the transaction. However, if the transaction is already completed, it may not be possible to cancel it. In such cases, you will need to contact the recipient and request a refund.

Automatic payment instructions

You can easily cancel automatic payment instructions through your bank’s online banking, mobile app, or customer service. Additionally, you can cancel the payment via the service provider’s online platform where the payment instruction was given.

Digital subscriptions and app purchases

Subscriptions or apps purchased through digital platforms can generally be canceled within a specific period. After this period expires, to receive a refund, please get in touch with the seller directly.

E-commerce purchases

If the product you ordered from an e-commerce site has not yet been shipped, you can cancel your order. If the product has already been shipped and you didn’t cancel in time, you can request a return within a specific period after receiving it. Since return policies vary depending on the seller and platform, reviewing the return conditions of the website before shopping will help you avoid potential issues later.

Steps to cancel an online payment

The steps to cancel a payment may vary depending on the payment method used and the transaction status. The cancellation processes via banks and e-commerce platforms are as follows:

Cancellation via bank

For online payments made with a credit or debit card, whether the transaction is cancelable depends on whether it is still in the authorization stage. If the transaction is pending (not yet finalized), you can contact your bank’s customer service to request cancellation. If the transaction has been finalized, you will need to contact the seller and ask that they initiate the refund process. After the cancellation or refund is processed, the amount will usually be reflected on your card within 7–14 business days.

Cancellation via e-commerce site

If you purchased an e-commerce site, the cancellation process may vary depending on the order status and the payment method. If your order has not been shipped yet, you can contact the e-commerce site and request cancellation. If the order has already been shipped, you must initiate the return process within the period specified by the seller after receiving the product. It is essential to follow the return procedures defined by the e-commerce site for the return to be accepted.

 

How does the refund process work?

In online payments, the refund process begins when the consumer exercises the right of withdrawal. This process, which consists of specific steps, is carried out by the legal obligations of both the consumer and the seller. According to Turkish Law No. 6502 on the Protection of Consumers, a consumer has the right to withdraw from a purchase without giving any reason or paying any fees within 14 days from the delivery date. To use this right, the consumer must notify the seller of their intention to return the product. This request is usually submitted via the e-commerce platform. Once the seller receives the request, they inform the consumer about the return process. To be eligible for a refund, the product must be returned unused, complete, and in its original packaging. If the seller has provided prior notice regarding shipping fees, the consumer may be responsible for the return shipping cost.

Once the seller receives the product, they check whether the returned product meets the return conditions. If it does, the refund is approved; otherwise, the consumer is notified that the return was rejected. If accepted, the seller is obliged to issue a refund within 14 days. The refund is typically made using the same payment method as the original transaction. For credit card payments, the time it takes for the refund to appear on the card depends on the bank’s processing time. To protect consumer rights, the refund process is regulated under specific rules. Therefore, it is essential to review the return policies before shopping and follow the return procedures to ensure a smooth experience.

 

What is chargeback, and how does it work?

Chargeback is the process of reversing a credit card transaction upon the cardholder’s request. In this process, the cardholder contacts their bank and claims that the transaction was not authorized, the product or service was not delivered, or they were a victim of fraud. During the application process, the cardholder must also provide evidence or correspondence that proves they did not receive the product or benefit from the service. The bank submits this dispute through the card network and requests that the merchant provide a defense. The merchant offers documents and proof of delivery to support their case. If the bank determines that the merchant’s defense is insufficient, the transaction is reversed, and the payment is refunded to the cardholder.

The most important aspect of the chargeback process is submitting the dispute within the legally allowed period. Although this period may vary by bank, it is typically 120 days from the transaction date. While chargebacks are an effective tool for combating fraud, they can pose risks for merchants if misused. Therefore, both buyers and sellers are advised to keep records of all transactions and communications to avoid potential issues.

 

Resources: 1, 2.

 

This blog post contains general information, not legal, financial, or investment advice. The content is prepared for informational purposes only, and you are advised to seek professional advice for your specific circumstances. The expressions in this article do not carry any binding nature or responsibility and reflect only the author’s evaluation. All your decisions are your responsibility, and Papel Electronic Money and Payment Services Inc. accepts no liability for any consequences.