What Are Some Consumer Rights for Credit Card Refunds?


Quick Answer

Under the Fair Credit Billing Act, consumers who have an unresolved dispute with a merchant can file a complaint with their credit card company and withhold payment until the dispute is resolved, according to Bank Rate. While the card company is investigating, it cannot charge interest on the disputed amount.

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Full Answer

The first step in getting a refund is returning the merchandise and asking the merchant to issue a refund to the credit card. If this fails, consumers have 60 days under the Fair Credit Act to dispute the charge, in writing, to their credit card company. Only purchases of more than $50 that take place in the consumer's state of residence or within 100 miles of the consumer's home address are covered by this law. However, many card issuers don't enforce the price and distance limitations, says Bank Rate. The card issuer must decide the dispute within 90 days or two billing cycles, according to the Federal Trade Commission.

Consumers who have a credit balance of more than $1 on their card and wish to receive a refund of the balance can write the card issuer to request a refund. The card issuer is required to send the refund within seven days, says the FTC.

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