The CC company doesn't investigate the dispute?

[w20031424]

I've had my Citi Forward card for more than a month now. Last month I have a dispute with an Ebay seller about a transaction of $38, so I asked Ebay for arbitration. And the next day, Ebay said I lose. But I don't want to give up, today I went to my Citicard website and disputed the charge, hoping that Citi will deal it with Paypal/Ebay. 

However, after I initiated the dispute, Citi says "A permanent credit for the disputed amount will be applied to your account within 2 business days.

Please contact us if you have resolved the dispute with the merchant directly.

We appreciate your business and look forward to serving you in the future."

Which obviously means that Citi absorbed the loss itself since it may take more money to investigate this transaction. That being said, I still prefer Citi investigate this and give me an verdict. 

Anyone familiar with this kind of situation?

[webhopper]

Yes, in some cases its cheaper for the card issuer to absorb the loss than it is for them to investigate.  Also, they can do what's known as a chargeback to ebay, and recoup the money.  The payment network (Visa or MC in this case) has a seperate merchant contract with the payment processor that would outline the chargeback procedures, most likely protecting the credit card issuer and credit card user.

This is why I pay for everthing with a credit card vs. a debit card.   

[GoldenloveNY]

I did a dispute with Amex on my Zync, and they credited my account the next day. It's just one of the reasons why, like webhopper, I use credit instead of debt to pay for everything. I suppose it is even easy to lie to your creditor just to get a chargeback (I heard Amex generally takes your side no matter what )

[navigatethis12]

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@GoldenloveNY wrote:
I did a dispute with Amex on my Zync, and they credited my account the next day. It's just one of the reasons why, like webhopper, I use credit instead of debt to pay for everything. I suppose it is even easy to lie to your creditor just to get a chargeback (I heard Amex generally takes your side no matter what )

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The instant credit is only done for small amounts. Usually amounts under 50 or 100 dollars. They aren't going to not investigate a $300 charge. Lying will also not work because most lenders require you to make some kind of contact to resolve the issue and provide evidence of the attempt to resolve it. American Express siding with the cardholder most of the time is only one of the reasons why many merchants do not accept it.

[webhopper]

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@GoldenloveNY wrote:
I did a dispute with Amex on my Zync, and they credited my account the next day. It's just one of the reasons why, like webhopper, I use credit instead of debt to pay for everything. I suppose it is even easy to lie to your creditor just to get a chargeback (I heard Amex generally takes your side no matter what )

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It would be easy, however, we do not advocate that on this forum, and too many chargebacks would raise red flags with the lender, possibly resulting in Adverse Action on your account

[longtimelurker]

Does the merchant agreement with Amex preclude further action?   If I am a merchant, delivered the goods as agreed,  and then get an unjustified and "final" chargeback from Amex, am I not able to sue either the cardholder or Amex?

[webhopper]

The merchange policy for Amex can be found https://www209.americanexpress.com/merchant/singlevoice/USEng/FrontServlet?request_type=navigate&pag...

[InfamousRSX]

and if you do a chargeback against paypal after they resolved the dispute and was not in your favor, your paypal account will be in negative since the seller is protected, and it can end up in collection, idk about other places.

[kimmiller112]

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@GoldenloveNY wrote:
I did a dispute with Amex on my Zync, and they credited my account the next day. It's just one of the reasons why, like webhopper, I use credit instead of debt to pay for everything. I suppose it is even easy to lie to your creditor just to get a chargeback (I heard Amex generally takes your side no matter what )

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Pretty much true which hurts companies.  The company I used to work for does short term vacation rentals.  A guest staying a week left two days early because of rain and wanted a refund on those two day, which we refused to do.  Our policies clearly stated that we do not offer refunds for weather related issues.  The guest disputed the charge for those two nights and ended up winning.   Now that I own my own business doing the same thing, I have considered not accepting Amex, but so many people use it that I feel that I need to accept it or risk losing business.  

I am in the middle of my first dispute and it is with Chase for flowers ordered online but not received.  No one answers the phone number provided on the flower company's website.  The amount is $75.  They are investigating it and issued me a temporary credit until the matter is resolved.  

[QAMngrGirl]

I investigate the chargebacks for my employer, the money is taken from our account and credited back to the user/consumer/cardholder as soon as they initiate a dispute with their CC company. We (I) have 15 days to provide any and all documenation proving authorization of services was properly obtained - including copies of the electronic CC authorization though the cashiering process. If we don't, we are out the money, otherwise the chargeback is reversed in our favor. Only 1 in maybe 50 of my chargebacks are valid (fraudulent purchases), the rest are buyer's remorse which is not grounds for a chargeback for the services provided (electronic delivery credit monitoring/scores).