WASHINGTON — There’s a reason consumer groups recommend shoppers make purchases with credit cards — if something goes wrong it could help secure a refund.
“This really is the strongest tool in the consumer protection toolbox,” said Kevin Brasler, executive director of Washington Consumers’ Checkbook. “If you have a dispute you can basically request a chargeback, which is requesting your money back from your credit card company,” Brasler said.
Before disputing a charge, Checkbook recommends consumers work with the company to give it a chance to make things right.
“It’s required by the (credit card) company, it’s required by the law even,” Brasler said. “And it’s only right that you try to work it out on your own.”
When all else fails, there are circumstances when credit card companies might refund the purchase. These include:
- Lousy service
- Defective or undelivered goods
- Products or services you didn’t accept
- Goods not delivered as promised
If you ask for a “chargeback,” the seller can protest. But the company is not likely to be successful if you’ve done your homework:
- Return, or at least try to return the merchandise.
- Document what’s wrong with the product or service.
For example, Checkbook says documentation could include an automotive repair shop correct and write-up what they did to fix a repair done poorly elsewhere.
If a consumer has signed a contract stating “all sales final,” or if there’s some kind of “buyer beware” clause, then the credit card holder is more likely to lose payment disputes to the vendors or credit card companies.
The federal Fair Credit Billing Act requires credit card companies to deal with fraudulent charges on behalf of consumers making the purchases. The law also insures that credit card companies give people a chance to dispute charges or withhold payment.
Some conditions apply thatmight nullify protections under the Fair Credit Billing Act:
- Debit card purchases
- Purchases made outside your home state
- Charges contested more than 60 days after receiving a bill
- Purchases made more than 100 miles away from a billing address
Many credit card companies and the banks that work with them offer protections that exceed what is required under federal law. Credit card companies want to keep customers happy. And Brasler notes, that most times the customer is right.
“In the agreements that the businesses sign with the credit card companies, if (they) want to accept credit cards, (they) have to agree to certain things … One is, if somebody has a dispute they have to mediate the dispute,” Brasler said.
Checkbook details some credit card refund success stories here.
