Quick overview

If a merchant refuses a refund, your next steps depend on three things: the merchant’s stated return policy, the laws where you live (and where the merchant operates), and how you paid. Consumer protections can require a refund, a repair, or a replacement for defective or misrepresented goods and services. Payment methods such as credit cards and debit cards also give you channels to dispute or reverse a charge.

This guide explains the legal tools, practical steps, timelines, and escalation paths to pursue when you’re denied a refund. It also includes sample language you can use when contacting the merchant and when filing disputes with payment processors or government agencies.

Which laws and rules can protect you?

  • Federal consumer protection agencies: The Federal Trade Commission (FTC) enforces rules against deceptive advertising and unfair practices and publishes guidance on refunds and returns (see FTC: Refunds and Returns). The Consumer Financial Protection Bureau (CFPB) provides resources about payment disputes and billing protections.

  • FTC: https://www.ftc.gov

  • CFPB: https://www.consumerfinance.gov

  • Payment law and rules:

  • Credit cards: Card networks and issuers allow cardholders to dispute unauthorized charges or goods/services not received. The Fair Credit Billing Act (FCBA) protects consumers for certain billing errors and unauthorized charges; it provides a federal process for disputing credit card charges with your issuer.

  • Debit cards and electronic payments: The Electronic Fund Transfer Act (EFTA) and network rules give limited protections for unauthorized transfers and errors; time limits and liability depend on how quickly you report the problem.

  • Warranties and product laws:

  • Express and implied warranties: Under the Uniform Commercial Code (UCC) and the Magnuson-Moss Warranty Act, consumers may have warranty remedies when an item is defective or not as described.

  • State laws and lemon laws: Many states enforce implied warranties and have specific protections for motor vehicles (lemon laws). These rules vary by state—check your state attorney general’s consumer protection website.

  • Contract and merchant terms: Retailers may post return policies that set expectations for returns and refunds. However, posted ‘no refunds’ or ‘final sale’ signs do not override statutory protections for defective or misrepresented goods.

Common scenarios and the usual remedy

  • Defective or not-as-described item: You can typically demand repair, replacement, or refund; if the merchant refuses, pursue a payment dispute or file a complaint with state or federal authorities.

  • Services not delivered or performed poorly: If performance falls far short of what was promised, you can request a refund or reduction in price and escalate if denied.

  • Digital goods and subscriptions: Refunds depend heavily on merchant policy. If a digital service is defective, misleading, or billed without consent, you have dispute options with your payment provider and can report deceptive practices to the FTC or CFPB.

  • “Final sale” or custom items: These sales often limit returns but do not eliminate legal remedies for defects or misrepresentation.

Practical, step-by-step actions to take right now

  1. Read the merchant’s return policy and gather evidence. Keep receipts, order confirmations, photos of defects, screenshots of product listings, and records of calls/messages.

  2. Contact the merchant in writing. Be concise: state the problem, the remedy you want (refund, repair, exchange), the date of purchase, and attach proof. Set a reasonable deadline (e.g., 7–14 days) for response.

    Sample message:

Hello — I purchased [item/service] on [date], order #[#]. The product is [describe defect or issue]. Under the advertised listing and applicable consumer law, I request a full refund (or repair/exchange). Please confirm by [date]. I have attached photos and my receipt.

  1. Escalate inside the company. Ask for a manager, the returns department, or the company’s customer-relations email.
  2. Use payment protections:
  • Credit card: Contact your issuer to start a chargeback or dispute. Card networks typically allow disputes for goods not received, goods not as described, or merchant fraud. Time limits vary by issuer—act promptly; many issuers allow disputes up to 60–120 days from the transaction, depending on reason and network.
  • Debit card / ACH: Contact your bank and ask about Electronic Fund Transfer Act protections. Liability and dispute windows differ from credit cards; early reporting reduces your potential loss.
  • Third-party services (PayPal, Apple Pay, Amazon Pay): Use the platform’s buyer-protection process and keep records of your communications.
  1. File a complaint with government agencies if the merchant refuses to cooperate:

  1. Consider mediation, arbitration, or small-claims court. Small claims court is a low-cost option for straightforward disputes—no lawyer required in most states. If the merchant’s contract contains an arbitration clause, it may limit court access; some arbitration agreements allow consumer claims to proceed in small claims court.

  2. Seek legal help for high-value claims. An attorney can advise on state-specific warranty or fraud claims and send a demand letter that often prompts quicker settlement.

Timelines and deadlines to watch

  • Chargebacks: Vary by issuer and network. Many disputes are most effective when started within 60 days, though some reasons allow up to 120 days. Check your card issuer’s dispute policy and act fast.
  • FCBA written notice (credit card billing errors): You generally must send a written dispute within 60 days of receiving a bill with the error.
  • State complaint windows: Vary widely. Some consumer complaints should be filed within months of the incident, others within a year. Check your state attorney general’s site for exact timing.

Because time limits vary by law and payment method, begin the dispute process immediately after the merchant’s refusal.

When to escalate to authorities or court

  • The merchant engaged in clear fraud (false advertising, non-delivery, counterfeit goods).
  • The amount at stake exceeds what you can recover via customer service or dispute resolution.
  • The merchant ignores repeated written requests and payment disputes.

Use state consumer complaint portals and the CFPB/FTC complaint forms to create an official record—regulators sometimes intervene or take action that helps other consumers.

Tips that increase your chance of success

  • Document everything: receipts, emails, photos, dates, and names of customer-service reps.
  • Be polite but firm: factual, professional messages are more effective than angry ones.
  • Use screen captures of product pages that show descriptions or promises the merchant made.
  • If you paid by credit card, prioritize a card dispute before pursuing small claims—card issuers can often reverse charges more quickly.
  • For subscription disputes, cancel the subscription, save cancellation confirmation, and follow the provider’s refund process. See our guide: Avoiding Subscription Traps: How to Cancel and Get Refunds.
  • For unauthorized or suspicious charges, see: How to Dispute Unauthorized Charges: Step-by-Step.

Example: A real-world workflow

  1. Customer receives a damaged appliance. 2. Contacts seller, seller refuses refund citing a 30-day policy and ‘no returns after 30 days.’ 3. Customer documents damage and product description, emails the seller with photos and a 14-day cure deadline. 4. Seller refuses. 5. Customer files a dispute with the credit-card issuer and a complaint with the state attorney general. 6. Issuer returns funds via chargeback; AG opens an inquiry if there are multiple complaints.

Common mistakes to avoid

  • Waiting too long to dispute with your bank or card issuer.
  • Relying solely on social media pressure without preserving evidence.
  • Assuming “final sale” always blocks legal remedies—statutory protections may still apply.
  • Failing to check whether the merchant’s refund policy violates state law (e.g., deceptive or misleading terms).

When refunds are unlikely

If you bought a true “as-is” collectible or custom-made good that meets the advertised description, refunds may be limited. For many purchases, however, fraud, misrepresentation, or defects create legal grounds for a refund despite seller resistance.

Professional disclaimer

This article is educational and does not replace legal advice. Laws differ by state and situation. For tailored assistance about a specific dispute, consult an attorney or a consumer-protection advocate.

Helpful resources

If you’d like, I can help draft a dispute message or checklist tailored to your situation—provide the purchase type, payment method, and timeline of events.