The cardholder claims they canceled a service or returned merchandise but didn’t receive a refund.
Cause
The merchant didn’t:
Issue a refund for canceled or returned merchandise.
Issue a refund because they don’t accept returns, but they failed to communicate this policy to the customer clearly.
Process a canceled guaranteed reservation properly.
Cancel a timeshare within 12 days of the receipt or contract date.
Response
Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 20 days to respond to the claim in dispute.
Steps to Prevention
Disclose your return policy to the customer on the transaction receipt or other documentation.
If you don’t accept returns or have a limited return policy, use words that make this clear (i.e. No Returns) on every agreement and transaction receipt.
For online transactions, require the cardholder to agree to the terms of the return policy by clicking on a button or checkbox.
