Quick overview
When a purchase fails — the product is defective, the service never delivered, or the seller refuses a promised refund — you have several, often overlapping remedies: return under store policy, warranty claim, cardholder dispute (chargeback or billing error), or a formal complaint to regulators. Which path works best depends on the payment method, the seller’s policy, the timing, and whether the problem is a defect, misrepresentation, or fraud.
The guidance below combines federal rules and common state protections, with practical steps I use in my practice when helping clients recover money or force a reasonable remedy.
Why this matters
Too often consumers accept poor outcomes because they don’t know their rights or miss deadlines. A clear, documented approach increases the chance of a full refund or replacement and reduces the time you spend fighting for it.
Authoritative sources: Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) provide consumer-facing guidance on refunds, returns, and payment disputes (see: https://www.ftc.gov and https://www.consumerfinance.gov).
What laws and rules protect you?
- Federal statutes: the Fair Credit Billing Act (FCBA) helps with credit-card billing errors and certain merchant disputes; the Electronic Fund Transfer Act (EFTA) protects debit and electronic payments; and the Magnuson‑Moss Warranty Act regulates written warranties on consumer products. See FTC and CFPB resources for details.
- State consumer-protection laws: states enforce unfair or deceptive trade practice laws and may require refunds for defective items or when a merchant misrepresents a product.
- Contract and warranty law: store return policies, written product warranties, and implied warranties under the Uniform Commercial Code (UCC) all affect remedies.
Note: federal protections set minimum standards; many merchants voluntarily offer better terms (longer return windows or free returns).
Immediate steps to take when a purchase fails (practical checklist)
- Stop using the item (if defective) to preserve evidence and warranty rights.
- Gather and preserve documentation: receipt, order confirmation, photos or video of defect, serial numbers, warranty paperwork, shipping labels, and all messages or call logs with the seller.
- Review the seller’s return/refund policy and any manufacturer warranty before contacting the seller.
- Contact the seller in writing (email or the platform message system). State the problem, the remedy you want (refund, repair, replacement), and attach evidence. Save copies.
- If the seller refuses or ignores you, escalate to the merchant’s higher customer support, file an on-platform claim (Amazon, eBay, Etsy), or use the retailer’s dispute process.
- If payment was by card and merchant won’t cooperate, contact your card issuer to dispute the charge (see section below on chargebacks and billing errors).
- If the merchant is unresponsive or closed, file complaints with the CFPB and your state Attorney General or consumer protection office and consider small claims court.
Chargebacks and billing disputes: when to use each option
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Chargebacks: A chargeback (also called a card dispute) is a process run by your card network and issuer to reverse a transaction when goods weren’t delivered, services were not provided, items were defective, or a merchant committed fraud. Rules and time frames vary by issuer and card network, but initiating a dispute with your card issuer is often the fastest route when a merchant won’t cooperate. For an in-depth guide, see our article: “How Chargebacks Work: Rights and Risks for Consumers” (https://finhelp.io/glossary/how-chargebacks-work-rights-and-risks-for-consumers/).
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Fair Credit Billing Act (FCBA): For credit card billing errors, including charges for goods not received or charges for goods that were not accepted, the FCBA requires you to notify your issuer in writing within 60 days of the statement containing the error to preserve legal protections. The card issuer must investigate and generally cannot try to collect the disputed amount during the investigation.
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Electronic Fund Transfer Act (EFTA): Debit-card and ATM errors have different timelines and liability rules than credit cards. Under EFTA, reporting unauthorized electronic transfers promptly (within 2 business days) limits your liability to $50; later reporting increases potential liability. The CFPB provides clear guidance on EFTA rules.
If you’re unsure whether to file a chargeback or a billing error, see our companion piece: “When to Seek a Chargeback vs a Bank Dispute” (https://finhelp.io/glossary/when-to-seek-a-chargeback-vs-a-bank-dispute/).
Documentation that wins disputes (what evidence matters)
Strong documentation shortens the path to remedy. Keep:
- Proof of purchase (receipt, order number, invoice).
- Delivery proof (carrier tracking, signed delivery confirmation).
- Photos/videos showing the defect or damage and timestamps if possible.
- Screenshots of product listings or advertisements showing promises the seller made.
- All correspondence (emails, chat logs, call notes) and names of merchant representatives.
- Warranty paperwork and terms, including exclusion clauses.
In my experience, disputes resolved in favor of consumers generally have clear before/after photos and a recorded sequence of attempts to resolve with the merchant.
Common scenarios and recommended remedies
- Item never delivered: ask the merchant, check carrier proof, and then open a dispute with your card issuer if unresolved. If you paid with a marketplace platform, use its claims process first.
- Defective on arrival: request a return label and refund. If the merchant refuses, file a chargeback and escalate to manufacturer warranty if applicable.
- Misrepresented product or service: document the listing vs. actual item and seek a refund; consider a chargeback for material misrepresentation.
- Merchant refuses refund but offers store credit: evaluate whether you need the item or prefer cash; if the item is materially defective, insist on a cash refund and cite the seller’s legal obligations.
How to escalate — agencies and courts
- CFPB: file a complaint at https://www.consumerfinance.gov/complaint/. The CFPB can intervene with financial firms and card issuers.
- FTC: report scams, deceptive practices, and general consumer complaints at https://www.ftc.gov.
- State Attorney General or consumer protection office: many states handle refunds and local business practices — search your state AG website.
- Better Business Bureau (BBB): file a complaint publicly to pressure the merchant; many sellers respond to BBB claims.
- Small claims court: for modest dollar disputes, small claims can be an effective remedy; keep your documentation and calculate filing costs versus potential recovery.
If the merchant’s contract requires arbitration, note arbitration clauses often limit class actions; evaluate with legal counsel.
Scripts and templates (concise)
Initial email to merchant:
“Hello — Order #[ORDER#]. I received [ITEM] on [DATE]. The item is [defective/incorrect/missing]. I request a full refund and return instructions. Attached: photos and receipt. Please respond by [DATE, e.g., 7 days].”
Dispute request to card issuer (brief):
“I want to dispute charge #[AMOUNT] on [DATE] from [MERCHANT]. Item not received/was defective/misrepresented. I have contacted the merchant and attached evidence. Please advise on next steps.”
Mistakes to avoid
- Waiting too long: missing deadlines for chargebacks or written FCBA notices can limit remedies.
- Throwing away packaging or proof of purchase.
- Accepting only verbal promises — always get commitments in writing.
When to hire help
Consider an attorney if the disputed amount is large, the merchant has an arbitration clause you want to challenge, or the issue involves complex warranty or safety defects. For smaller amounts, the CFPB, state AG, and small claims court are cost-effective paths.
Related resources on FinHelp
- Read our guide on chargebacks: “How Chargebacks Work: Rights and Risks for Consumers” for step-by-step dispute strategy: https://finhelp.io/glossary/how-chargebacks-work-rights-and-risks-for-consumers/.
- If a merchant refuses a refund, see practical options in: “What to Do If a Merchant Refuses a Refund: Consumer Remedies” (https://finhelp.io/glossary/what-to-do-if-a-merchant-refuses-a-refund-consumer-remedies/).
Final practical checklist (do this now)
- Photograph the issue and keep the packaging. 2. Save receipts and order confirmations. 3. Contact the merchant in writing. 4. If unresolved, contact your card issuer promptly and file a dispute. 5. File complaints with CFPB, FTC, or state AG if necessary. 6. Consider small claims or legal help for larger losses.
Professional disclaimer: This article is educational and reflects common federal protections and best practices as of 2025. It is not legal advice. For case-specific legal questions, consult a licensed attorney or consumer-rights advocate.
Author’s note: In my 15 years assisting clients, timely documentation and a calm, documented escalation process win the majority of disputes. Acting promptly and keeping clear records is the simplest way to convert a failed purchase into a refund or replacement.
