Charge back on my Chase FF for Visa Gift Card purchase

[lyTENciL]

I hope this is the right board. Long version below. Short version: $100 Visa Gift Card was lost in mail. After exhausting other avenues, I am considering pursuing a chargeback with Chase. I have never done one before with any bank. Will this risk an adverse action from Chase? It's a new Freedom Flex opened in November 2020, and I have no other relationship with them.

I bought a $100 Visa Gift Card from the grocery store. I mailed it to a family member in a Christmas card, and they never received the card. I retained the receipt and proof of activation, including the full scanned barcode. But I never opened the card so I didn't have the 16-digit card number (note to all: open and record this number before doing anything with these GCs!). I have had a heck of a time getting any resolution. After calling the GC issuer, I was directed to the grocery store to resolve. The grocery store was saying they could do nothing, but finally contacted the issuer and got the card deactivated. Why they managed this after I failed with two reps providing same info is a mystery for another time. Now they are saying I have to talk to some bookeeper who is never in about getting refunded. I am hoping this happens without much more resistance, but if needed, I will pursue the chargeback option.

[Anonymous]

Not sure why a chargeback would work, you got the item you purchased.   I was wondering about purchase protection, but that seems to have two strikes:

Not covered: Traveler’s checks, cash, tickets, credit or debit cards, among other negotiable purchased instruments

and also not covered.

• Items under the control and care of a common carrier, including
the U.S. Postal Service, airplanes, or a delivery service

[lyTENciL]

I'll have to look more into it. Now it's been deactivated, so I haven't gotten the item I purchased...

[UncleB]

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@lyTENciL wrote:

I hope this is the right board. Long version below. Short version: $100 Visa Gift Card was lost in mail.

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You don't have an issue with the merchandise, you have an issue with a USPS mail delivery.  This is different from a situation where a vendor mailed you the gift card (and you never received it).

If the bank were to grant your charge back the grocery store would be the losing party yet they were not at fault.  I don't see Chase being willing to do this, and even if they did the store would likely fight it (and would most certainly win).

I considered that USPS insurance might have been helpful, but unfortunately even that wouldn't have worked since USPS insurance (including that provided free with Priority Mail) specifically disallows payment for "Lottery tickets, sweepstakes tickets, contest entries, gift cards and similar items."

At this point your best bet is to try to work with the gift card issuer since they have indicated willingness to help.  That said, they probably aren't required to reimburse you (many if not most gift card terms of service specify that gift cards should be treated as cash) so I would be very patient with the folks there who are trying to help.

[lyTENciL]

Oh I am being massively patient . I do agree about USPS and cash-equivalence, except for the fact that there is a procedure to report and replace lost cards. One step has been accomplished - card has been deactivated. I'm working on the second step, getting replacement or reimbursement. I think I will succeed with the issuer or seller, but since both have variously stated that the other party is responsible for this, I am exploring back-up options. I would think that if a party does not abide by a policy to replace/refund a lost item, that may qualify for Chase's intervention? But I'm getting the sense from you all I am wrong on this. Reiterating that this is an item that has been rendered worthless once reported lost.

[Anonymous]

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@lyTENciL wrote:

Oh I am being massively patient . I do agree about USPS and cash-equivalence, except for the fact that there is a procedure to report and replace lost cards. One step has been accomplished - card has been deactivated. I'm working on the second step, getting replacement or reimbursement. I think I will succeed with the issuer or seller, but since both have variously stated that the other party is responsible for this, I am exploring back-up options. I would think that if a party does not abide by a policy to replace/refund a lost item, that may qualify for Chase's intervention? But I'm getting the sense from you all I am wrong on this. Reiterating that this is an item that has been rendered worthless once reported lost.

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A chargeback is used if an item(or service) received from a merchant either never arrives, or is faulty/not as described etc.   You purchased the gift card, and, presumably, if you had used it then, it would have worked as agreed.   So, it's not a chargeback issue, that really ends once you receive the as advertized item.   I think you are arguing that the item isn't as advertized, as the company isn't(may not be) following up with all the promised policies, but I think that's a little tenuous.   With a different product or means of loss, you could use either Purchase Protection or USPS insurance, but.....

Plus there is a small risk of AA on the card, you could certainly expect them to remove the URs for the purchase (no big deal) but could also close the card.

[lyTENciL]

Thankfully I've been able to get a resolution. I got a rep who could initiate the proper process. I had to call back again when I didn't receive the necessary email. Just sent proof of purchase and they responded they had approved the loss claim. Replacement is on the way.

Perfect example of hang up call again (thrice).