Nicky owned a pool supplies and cleaning company.
Unfortunately for Nicky she received a complaint from one of her customers, Christine. Christine complained that her swimming was still green, despite purchasing a brand new pool filter from Nicky’s pool company worth $1,655. Christine complained that the filter was faulty.
Christine had paid for the new filter with her credit card.
When Christine contacted her credit card company about the filter dispute, the credit card company processed a chargeback. This meant that Nicky did not receive the $1,655 for the filter she had installed in Christine’s pool.
Nicky thought it was unfair for the credit card company to process a chargeback. Nicky doubted the filter was faulty, rather the pool was green because the level of chemicals in the pool were incorrect. Nicky also thought it unfair for the credit card company to allow a chargeback when Christine had refused to let her inspect the filter or return the filter.
Nicky complained to the credit card company about the chargeback. She experienced difficulties communicating with the credit card company and her complaint ended up coming to FSCL.
We asked the credit card company why it had processed the chargeback. The credit card company said:
- Christine had told it that she was disputing the transaction for the filter
- it asked Nicky for her response to the dispute and, as part of this response, proof that Nicky had received Christine’s authorisation to charge the credit card for the filter
- Nicky had been unable to provide them with sufficient evidence to show the filter transaction had been authorised by Christine.
Nicky was surprised when we told her that the credit card company said she had not provided sufficient proof that the filter transaction had been authorised by Christine. Nicky said that the credit card company had not previously asked her to provide this information.
Nicky had email correspondence with Christine where Christine had specifically instructed Nicky’s pool company to charge her credit card $1,655.
Once the credit card company received these emails it reversed the chargeback. This resolved Nicky’s complaint against the credit card company about the chargeback. However, we warned Nicky that Christine may still pursue her complaint about the filter through another avenue.
Credit card providers will not usually become involved in a dispute about the quality of a product or service that has been provided. This is a consumer dispute for the individuals to resolve directly with each other. However, if an unauthorised transaction appears on your credit card account, this is when you might contact your credit card provider to request a chargeback.