Here's how Lloyds uses chargeback to reimburse customers for £2 million

When products didn't arrive as promised, more than 40,000 Lloyds customers used the chargeback program to get their money back

We examine how chargebacks operate and strategies for safe online shopping.

According to the bank's most recent data, Lloyds has reimbursed customers £2 million in card chargebacks that would have otherwise been lost in transactions on fraudulent and fraudulent websites.

Over 44,000 Lloyds customers have paid these dubious websites for goods that never arrived, turned out to be low-quality knockoffs, or led to unauthorized subscriptions.

But after filing a chargeback request for card payment protection, they were able to recover their money from the con artists, according to Lloyds.

When you haven't received what you paid for or the goods or services weren't as promised, a chargeback is a reversal of a debit or credit card transaction that enables your bank to get your money back from the retailer's bank.

The average transaction value in the Lloyds study was 35, based on data from January 1, 2025, to September 30, 2025; there is no lower limit on claims.

Spending is predicted to increase as Black Friday draws near and Christmas is less than six weeks away. Lloyds is cautioning consumers to be wary of fraudulent online retailers.

Investment scams, romance scams, and AI scams are additional scams to watch out for.

In contrast to the usual weekend average of 314 million, Lloyds customers spent approximately 594 million on debit cards over the Black Friday weekend last year, an increase of 89.6%. Customers are expected to match that amount of spending this year.

"Everyone is busy searching for the ideal Christmas gifts, and with so many deals, offers, and choices popping up online, it is easy to feel overwhelmed, particularly when you're trying to stick to a budget and get everything done on time," stated Liz Ziegler, director of fraud prevention at Lloyds.

"Scammers are adept at blending in on social media, and it can be simple to overlook the red flags of a dubious website or advertisement. A "

A dubious website scam: what is it?

Scammers are ready to set up their phony websites and deceive people into giving money to them instead of legitimate retailers as people swarm online to purchase in-demand Christmas gifts.

Popular holiday products like Labubu dolls and upscale advent calendars are used by dubious websites and phony online stores to entice customers. Here's how it functions.

Scammers determine which products are in high demand. At the moment, that includes high-end advent calendars, Labubu dolls, and Jellycat toys in addition to ever-green Christmas and Black Friday items like electronics, jewelry, and perfume. They will create a website and pretend to sell these well-liked products. The products will be significantly reduced in comparison to well-known stores, and the website will feature a banner that conveys urgency, such as a time limit on the sale. Ads for their dubious websites will then be posted on social media by the scammers. Additionally, the advertisements will employ pressure-selling strategies, urging viewers to click in order to avoid missing out. The products are either cheap fakes or never arrive once customers enter their payment information on the website.

The number of dubious websites is increasing.

According to Lloyds research, consumers are being cautioned to be cautious because the number of these dubious websites is increasing quickly.

The average monthly number of these rogue merchants found through customer complaints has doubled from 45 to 90 between the first quarter of 2025 (January to March) and the summer (July to September). According to the bank, there are probably even more rogue merchants in reality.

More recently, 102 rogue merchants were identified in October of this year.

How is a bank chargeback processed?

You can file a chargeback claim with your bank if you purchase something with a debit or credit card and it doesn't arrive or isn't what was advertised.

When you do not receive the goods or services you paid forincluding if the retailer or supplier has failedyour bank, which issued the card you used to make the purchase, can reclaim money from the seller's bank through a chargeback, also called a dispute.

It is a voluntary program approved by card networks like Visa and Mastercard rather than a legal right like Section 75 protection, which holds a credit card provider and the retailer jointly liable in the event that a purchase goes wrong.

You must attempt to address the issue directly with the seller before initiating a claim. You should contact your bank if the seller disregards your request or declines to assist.

Only after a customer has filed a chargeback may banks request the return of funds; chargeback claims must be filed within 120 days of the transaction date or, if applicable, the delivery date.

After 15 days, a claim may be initiated if the purchase was made using a Visa card. It is at least 30 days following the date of the transaction if it is a Mastercard. The seller's bank may then be asked to return the funds.

The process is quick and simple because you can almost always request a chargeback via your bank's mobile app.

Each chargeback report regarding these fraudulent vendors also aids banks in alerting reputable payment platforms about the fraudulent websites, enabling them to stop accepting payments.

"Don't worry, you might be able to get your money back if you've been caught paying for something that hasn't arrived or isn't what you expected," stated Ziegler.

"We can attempt to recover your money from these dishonest sellers by filing a chargeback through your bank's mobile app. After that, you can continue to enjoy the celebrations. A "

Lloyds' best advice on how to shop online safely.

Before making a purchase, carefully verify that you are on the official website by checking the website address. It's safer to do a quick search in your browser than to click on a link from a social media post or advertisement. Watch out for advertisements and social media posts. Don't click through to a deal you see on social media. Instead, look up the retailer on your own to confirm its legitimacy. It most likely is if it seems too good to be true. Large savings on well-liked products may be a warning sign. Be mindful of the fine print, particularly when it comes to "free" deals. Some have additional fees or hidden subscriptions. Look at reviews. Before making a purchase, look for independent reviews as they can help you identify shady vendors. Report any suspicious activity. Inform your bank right away if something goes wrong. It might help you recover your money and safeguard others as well.