Merchant Disputes

Merchant disputes are plentiful in the world of high commerce. Everyday consumers flock to the customer service counters in search of a kind face and a considerate voice. They need to return something and they want their money back right then and there.

If you paid with a credit card that is the good news. Those who bring in returns and are hoping for cash back without a credit card will not fare as well. Thank goodness for little blessings! Learning now what your rights are as a merchant will aid you better for the next time.

The first step that you will want to take is to be informed. Turn over your credit card bill and familiarize yourself well with the fine print.

Billing Rights Summary

In Case of Errors or Questions About Your Bill

You will be asked to, if your bill is wrong, or if you need more information about a transaction on your bill, write to the address given, as soon as possible. You are obligated to make contact within 60 days after you received the first bill on which the error or problem appeared. You can telephone the company, too, however, doing this will not preserve your rights.

In your letter, offer the following information: Your name and account number. The dollar amount of the suspected error. Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are unsure about.

You are not required to pay any amount in question while being investigated, but you are still obligated to pay the parts of your bill that are not in question. While being investigated, you cannot be reported as delinquent or action be taken against you to collect the amount you question.

What does this mean and how do you get your money back? Your position is much stronger if the merchant or company that you are attempting to get the refund from is still in business and has not gone bankrupt. Once bankrupt, you become a creditor of the company. Your chances of retrieving any money are slim.

Follow the below steps carefully and exactly in order to be ensured that you will receive your money back. Write a letter to the company and include the following:

1. Claim your dissatisfaction, and that you insist on nothing but a refund.

2. Include your name, address, telephone number, ID number, date, merchant name and address, what is in the package you are returning, and your credit card number.

3. Sign your name.

4. Make three copies of your letter. One to send to the company; one to send to your credit card company; one for your records.

5. Send the product with your letter back to the company. It is best if you have saved all the original packaging, bottles, paperwork, kit materials, products, etc. Send it return receipt requested, insured by USPS. If you ship it by UPS or Fedex, they have a record of delivery, but insure your package.

Write another letter to your credit card company and include the following:

1. Your name, address, telephone number, account number, and date.

2. Say that you want to dispute a charge to your account.

3. Write the amount of the charge, the reference number, the transaction date, the posting date, and the name of the merchant. This information is on your credit card statement.

4. Say that the merchandise was unsatisfactory; it didn't work as advertised; you are dissatisfied and that the merchandise is covered by a money-back guarantee.

5. Give the date you returned the merchandise to the merchant by Fedex. 6. Request credit to your account for X dollars.

7. Enclose the following documentation and tell them in writing that you have included: a copy of the shipping/postal receipt, a copy of the return receipt (if USPS), your letter to the merchant, a copy of the money-back guarantee.

8. Sign the letter.

9. Make a copy for your records. Put all the documentation in with your letter and send it to the credit card company.

This will start the process and now you can wait to see if the merchant will give you your money back. When you take avail of the services and help of the credit card company, by going through the dispute process, you now have powerful leverage. Credit card companies will receive refunds out of recalcitrant companies.

How? When the credit card company receives your letter and documentation, the process and clock starts. The credit card company gives a merchant 30 days to issue a credit on their own. If you don't get a credit within that 30 days and if all your documentation is in order, the credit card company issues you what is called a Provisional Credit. You will receive a credit to your account for the amount in question. Don't spend that money yet, because the merchant now has 60 days to respond, let the credit stand as is, or dispute your request for a refund. At this stage, it is rare to see a merchant dispute your request, but just to be safe, wait until 60 days after you receive your Provisional Credit. Call your credit card company and ask if the 60 days is up. Now you absolutely have all your money back and you can be certain of that!

Can Something go Wrong?

1. You waited too long to dispute the charge. You must send a letter to the credit card company within 60 days of the first statement that the charge appears. When you wait too long your forfeit the chance for the credit card company to go to bat for you.

2. The company goes bankrupt. You may receive nothing of course. The credit card company can not help.

3. You do not send all the necessary documentation. If you sent your original letter within the 60 day dispute period, you will be OK. The problem you run into is that the credit card company requires all the documentation. If the merchant is in danger of going bankrupt, speed is of the essence.

4. You send a letter and products back to the company. You phone your credit card company for help getting a refund. Your rights are not preserved by a phone call; you have to dispute it in writing.

5. If you used a debit card, you are out of luck. Debit cards are not covered by the same billing rights as credit cards. Debit cards immediately remove funds out of a checking account or money market account and are not credit cards.

Purchase Disputes / Merchant Disputes

Keep abreast of your legal rights in the event that you purchase an item or service with your credit card and find it to be not what you wanted. Visit the merchant again directly and make a good faith attempt to settle your disagreement. In the event that you are unsuccessful in dealing directly with the merchant you will now have a claim against the credit card issuer in certain situations. You need to contact your lender for more information. As you would do in the case of billing errors, document everything that occurs concerning your item, in writing.

Billing Errors and Purchase Disputes

As soon as you have made a purchase be sure to document everything that occurs after, and include the efforts that you made to resolve the problem. You can also document a phone call if you follow it up with a letter.

When contacting your credit card issuer, be sure to include your name, address, account number, the transaction number, and the amount and date of the purchase details. It is important to follow your lender's express guidelines when describing your problem.

Make and save copies of all documents.

Lastly, it is a very good idea to keep any records containing personal account information. Don't destroy them, even when you feel that you no longer need them. Doing this, you will be protecting yourself. Better safe than sorry!