Can your bank dispute a charge if merchant does not want to refund money?
Asked by: Mr. Saul Raynor | Last update: February 17, 2026Score: 4.7/5 (57 votes)
Yes, your bank (credit card issuer) can and will dispute a charge if a merchant refuses to refund you for a legitimate reason, a process called a chargeback, which is a powerful consumer tool under laws like the Truth in Lending Act. You must first try to resolve it with the merchant, then contact your bank to initiate the dispute, providing details and documentation of your failed attempt to get a refund for issues like not receiving goods/services or damaged items.
What to do if a merchant refuses to refund?
If a merchant refuses a refund, first escalate within the company (manager/corporate), then dispute the charge with your credit card company (chargeback), and finally, file complaints with consumer protection agencies like the Better Business Bureau or your State Attorney General, potentially escalating to small claims court for significant amounts. Keep all documentation (receipts, emails, policy) to support your claim.
Can I dispute a charge if they won't refund me?
A company can't make you wait forever. If something didn't arrive or you didn't accept it, and the company won't refund your money, dispute the charges.
What happens if a retailer refuses a refund?
Retailers don't always play ball, even if you're within your rights. It might be tricky to get your money back, which is why it's so important to know where you stand. If you can't get the support you need from the retailer in the form of a refund, repair or replacement, you can file a complaint with the company.
Can a bank refuse to dispute a charge?
If your fraudulent transaction claim is denied by a bank, you should first find out why the claim was denied. For example, the bank might claim that you didn't reasonably protect your identity or account, or it might even have concluded that you did make the purchases and are trying to get out of paying for them.
Merchant Explains How To Fight Chargebacks
What qualifies for a bank dispute?
A dispute is a disagreement between the card/account holder and the merchant with respect to a transaction. Disputable charges include double billings and charges to your account that belong to another account. Non-disputable charges include sales tax and shipping.
What to do if a bank refuses to refund you?
Some situations are successfully resolved over time, but many consumers are not as fortunate. If you have notified your financial institution about unauthorized transactions, but your bank won't refund stolen money, you may need a consumer fraud lawyer to protect your rights.
What to do if a seller refuses to refund?
If a merchant refuses a refund, first escalate within the company (manager/corporate), then dispute the charge with your credit card company (chargeback), and finally, file complaints with consumer protection agencies like the Better Business Bureau or your State Attorney General, potentially escalating to small claims court for significant amounts. Keep all documentation (receipts, emails, policy) to support your claim.
In what circumstances can you insist on a refund?
You must offer a full refund if an item is faulty, not as described or does not do what it's supposed to. In some cases you must offer a refund if the customer changes their mind.
What reasons are valid for disputing a charge?
Claims and defenses are any valid reasons you have for not paying a certain credit card charge. They include billing errors, unauthorized charges, and claims that goods or services were misrepresented, defective, or not delivered.
Is it illegal to not issue a refund?
Most retail stores allow you to return things you buy within a reasonable time for a full refund, credit, or an exchange. When a store clearly displays a limited or no-refund policy, however, refunds and exchanges are not required by law.
What happens if there is no refund policy?
A no refund policy informs customers that all sales are final, and they shouldn't expect a monetary refund or replacement item even if they're unsatisfied with their purchase.
Is denying a refund illegal?
It's generally not illegal for a US business to refuse a refund if they clearly state their "no refund" policy before purchase, but it can be illegal if the product is faulty/defective or if the store fails to conspicuously display its policy, as many states have laws requiring this disclosure or mandating refunds for defective goods, overriding store policies. Federal law doesn't set broad return rules, but consumer protection varies by state, with some (like California, Florida, New York) requiring refunds if policies aren't posted.
What are the 4 rights of a consumer?
The four foundational consumer rights, established by President John F. Kennedy, are the Right to Safety, Right to be Informed, Right to Choose, and Right to be Heard, protecting consumers from hazards, ensuring access to information, promoting market competition, and providing a voice for consumer concerns, respectively. These core rights form the basis for broader consumer protection laws worldwide, with later additions including rights to redress, education, and a healthy environment.
Do you have a legal right to get a refund?
Generally speaking, when you buy goods you enter into a legally binding contract and you have no right to return them for a refund. However, there are circumstances where a right to return goods may arise.
Do companies legally have to give a refund?
Under the CRA, consumers may be entitled to a refund, replacement, repair and/or compensation where goods are faulty or not as described. They are also entitled to a refund and/or compensation where the seller had no legal right to sell the goods. See 'Selling and supplying goods' for more detailed information.
On what grounds can a customer ask for a refund?
If a product or service is faulty, broken or not as described, depending on the problem, you may have the right to a refund, repair or replacement.
Which two are rules applicable to the issue of refunds?
These rules apply to issuing refunds: You can't refund more than either the original receipt amount or the remaining unapplied amount. You can only refund original receipts that were either remitted or cleared. You can't issue a credit card refund unless the customer payment was made by credit card.
What happens if a merchant won't give a refund?
If the merchant won't give them a refund, they can simply ask the bank to get them their money back instead. In reality, however, chargebacks come with significant downsides for both the customer and the merchant.
What can I do if a business refuses to refund my money?
Check with your local small claims court for information about how to file your lawsuit. If all else fails, consider a lawsuit. You'll be able to sue for damages or any other type of relief the court awards, including legal fees. A lawyer can advise you about your options.
What to do if a retailer won't refund you?
If a merchant refuses a refund, first escalate within the company (manager/corporate), then dispute the charge with your credit card company (chargeback), and finally, file complaints with consumer protection agencies like the Better Business Bureau or your State Attorney General, potentially escalating to small claims court for significant amounts. Keep all documentation (receipts, emails, policy) to support your claim.
Why would a bank deny a dispute?
After conducting an investigation, your card issuer may deny your dispute. For example, the issuer may not find evidence that the transaction you disputed was unauthorized. The issuer may deny the entire disputed amount or a part of it; either way, it should inform you in writing about the denial and how much you owe.
Is it illegal to deny refunds?
It's generally not illegal for a US business to refuse a refund if they clearly state their "no refund" policy before purchase, but it can be illegal if the product is faulty/defective or if the store fails to conspicuously display its policy, as many states have laws requiring this disclosure or mandating refunds for defective goods, overriding store policies. Federal law doesn't set broad return rules, but consumer protection varies by state, with some (like California, Florida, New York) requiring refunds if policies aren't posted.
Why would a bank refuse a refund?
Refusing a refund
Your bank can refuse a refund for an unauthorised payment if they can prove you authorised the payment, you acted fraudulently in relation to the payment, were negligent in protecting access to your accounts or failed to notify the bank within 13 months of the unauthorised payment.