Bank took every step to obtain refund but failed in its communication with customer

Categories:

Cards, Chargebacks,

Summary:

In March 2025, Tim made seven payments on his credit card totalling $8,200. Shortly afterwards, he contacted the bank to say the merchant had agreed to refund him, but that the credits had not been processed. He supplied emails from the merchant, and the bank requested the credit card company refund the payments. Tim’s account was credited $4,000 in June. However, the merchant disputed the remaining $4,200, and the credit card company ruled in favour of the merchant. Tim complained about the outcome and also complained about the bank’s refusal to give him temporary credit during the dispute. He also complained about delays in how the bank handled his complaint.

Published:

July 2026

Our investigation

We considered the bank used the correct chargeback reason and took the dispute through every stage available to it, including arbitration. Once the credit card company ruled in the merchant’s favour, the bank had no further ability to recover Tim’s money.

As for Tim’s request for temporary credit, this was at the discretion of the bank, and it was entitled to refuse his request.

However, we found failings in the bank’s handling of Tim’s complaint. It delayed responding to requests for information for five months and did not communicate effectively. The bank apologised for these failings and made a goodwill offer to Tim of $1,000.