Consumer Refund Rights: Getting Your Money Back

Getting your money back when a purchase goes wrong is often more complicated than it should be. The FTC provides guidance on refunds and returns under federal law. While businesses frequently advertise generous return policies, actually obtaining a refund can involve unclear rules, unresponsive customer service, and conflicting information about your rights.

This guide explains when you're legally entitled to a refund under federal and state law, how store policies interact with your legal rights, the credit card chargeback process, and step-by-step strategies for getting your money back when you're entitled to it.

When You're Legally Entitled to a Refund

Contrary to popular belief, there's no general federal law requiring retailers to offer refunds. However, you are legally entitled to your money back in specific circumstances:

Situations Creating Refund Rights

Situation	Legal Basis	Your Right
Product not as described	FTC Act, UCC § 2-313	Full refund or conforming replacement
Defective product	Implied warranty (UCC § 2-314)	Refund, repair, or replacement
Service not performed	Breach of contract	Full refund for unperformed services
Door-to-door sale	FTC Cooling-Off Rule (16 CFR 429)	Cancel within 3 days for full refund
Online order not delivered	FTC Mail Order Rule (16 CFR 435)	Full refund if delivery exceeds 30 days
Gym membership (new)	State laws (varies)	Cancel within 3-5 days in most states
Timeshare purchase	State timeshare laws	Cancel within 3-15 days (state varies)
Unauthorized charge	FCBA, EFTA	Full reversal (liability limits apply)

Federal Consumer Protection Laws

FTC Cooling-Off Rule

The Federal Trade Commission's Cooling-Off Rule (16 CFR 429) gives you three days to cancel certain sales:

• Applies to: Sales made at your home, workplace, dormitory, or temporary locations (like hotel rooms, convention centers)
• Minimum amount: $25 or more
• Cancellation period: 3 business days (midnight of the third day)
• Seller requirements: Must provide two copies of cancellation form; must inform you of right to cancel
• Refund deadline: Seller must refund within 10 days of receiving cancellation

Does NOT apply to: Online purchases, sales at permanent retail locations, real estate, insurance, securities, or sales under $25.

FTC Mail, Internet, or Telephone Order Rule

Under 16 CFR 435, sellers must ship orders within the time promised (or 30 days if no time stated):

• If shipping is delayed, seller must notify you and offer cancellation
• If you don't respond to delay notice, seller can assume consent for up to 30 more days
• You can cancel anytime before shipment for a full refund
• Refund must be issued within 7 business days (check/money order) or 1 billing cycle (credit card)

Fair Credit Billing Act (FCBA)

The FCBA (15 U.S.C. § 1666) protects credit card users from billing errors and allows disputes for:

• Charges for goods not delivered as agreed
• Charges for goods not accepted or returned
• Mathematical errors
• Unauthorized charges
• Charges for which you request written proof

Key protections:

• Must dispute in writing within 60 days of statement date
• Issuer must acknowledge within 30 days
• Issuer must resolve within 2 billing cycles (max 90 days)
• You don't have to pay disputed amount during investigation
• For purchases over $50 within 100 miles of home, you have same claims against issuer as against merchant

State Consumer Protection Laws

State laws often provide stronger protections than federal law. Key state-level rights include:

State Refund Disclosure Requirements

State	Requirement	Consequence
California	Must post refund policy conspicuously	If not posted, full refund within 30 days
New York	Must post refund policy at checkout	If not posted, 30-day refund assumed
Massachusetts	Must disclose policy before sale	Violations = UDAP claim (treble damages)
Florida	3-day refund right for certain sales	Health clubs, dating services, etc.
Texas	Must disclose "no refund" policy	If not disclosed, refund may be required
Minnesota	Cancellation rights for health clubs	Cancel within 3 days; pro-rata refund after

State UDAP Statutes

Every state has an Unfair and Deceptive Acts and Practices (UDAP) law that may provide refund rights when businesses engage in:

• False advertising about products
• Bait-and-switch tactics
• Deceptive pricing
• Failure to disclose material facts
• Misrepresenting refund policies

Many state UDAP laws allow consumers to recover attorney's fees and statutory damages (often double or treble actual damages).

Warranty Rights and Refunds

Implied Warranty of Merchantability

Under UCC § 2-314, every sale by a merchant includes an implied warranty that goods are:

• Fit for ordinary purposes
• Of average quality for goods of that type
• Properly packaged and labeled
• Conforming to package promises

Remedy: If goods fail to meet these standards, you can reject them and demand a refund, or accept them and recover damages.

Express Warranties

Any factual statements, descriptions, or samples that become "part of the basis of the bargain" create express warranties. If the product doesn't conform:

• You may reject and demand a refund
• You may accept and sue for damages
• Manufacturer warranties often provide repair/replace/refund options

Magnuson-Moss Warranty Act

This federal law (15 U.S.C. § 2301) applies to written warranties on consumer products:

• "Full" warranties must provide repair without charge, replacement, or refund if repair fails
• "Limited" warranties can restrict remedies but must disclose limitations
• Consumers can sue for breach and recover attorney's fees
• Allows class actions for warranty violations

Credit Card Chargebacks

Chargebacks are one of your most powerful tools for obtaining refunds. Here's how to use them effectively:

Valid Chargeback Reasons

Reason Code	Description	Documentation Needed
Merchandise not received	Item never delivered	Order confirmation, tracking (if any), correspondence
Not as described	Item differs materially from listing	Photos, listing screenshots, product received
Defective merchandise	Product doesn't work as intended	Photos/video of defect, repair estimates
Cancelled recurring charge	Charged after cancellation	Cancellation confirmation, subsequent charges
Credit not processed	Promised refund never received	Refund promise in writing, return tracking
Duplicate charge	Charged twice for same transaction	Statements showing both charges

Chargeback Process

1. Contact merchant first: Card issuers expect you to try resolving with the merchant (document your attempts)
2. Call your card issuer: Explain the situation and request a chargeback
3. Submit written dispute: Follow up in writing within 60 days of statement date
4. Provide documentation: Include everything that supports your claim
5. Wait for investigation: Issuer has up to 90 days
6. Respond to merchant response: If merchant disputes, provide additional evidence

Chargeback Time Limits

Card Network	Standard Deadline	Notes
Visa	120 days	From transaction or expected delivery
Mastercard	120 days	From transaction or discovery of issue
American Express	120 days	More lenient in practice
Discover	120 days	May extend for fraud
FCBA (legal minimum)	60 days from statement	Written notice required

Debit Card and Bank Account Protections

Debit cards offer less protection than credit cards, but you still have rights under the Electronic Fund Transfer Act (EFTA):

Unauthorized Transaction Liability

• Report within 2 days: Maximum $50 liability
• Report within 60 days: Maximum $500 liability
• Report after 60 days: Unlimited liability for subsequent transactions

Error Resolution

• Report errors within 60 days of statement
• Bank must investigate within 10 business days (20 for new accounts)
• Must provisionally credit account if investigation takes longer
• Must resolve within 45 days (90 days for POS, foreign, or new accounts)

PayPal and Digital Payment Protections

PayPal Purchase Protection

• Coverage: Item not received or significantly not as described
• Deadline: 180 days from payment
• Process: Open dispute, escalate to claim if unresolved
• Limitation: Must pay with PayPal balance, bank, or debit card (credit card disputes go through issuer)

Other Digital Wallets

• Apple Pay, Google Pay: Disputes go through underlying card issuer
• Venmo, Zelle: Limited protection—these are designed for trusted parties
• Buy Now Pay Later (Affirm, Klarna): Each has its own dispute process

Step-by-Step: Getting Your Refund

Step 1: Contact the Merchant

1. Call customer service (note date, time, representative name)
2. Clearly state the problem and your desired resolution
3. Ask for manager if frontline refuses
4. Follow up in writing (email or letter) summarizing conversation

Step 2: Escalate Within the Company

1. Email executive customer service (often executives@[company].com)
2. Contact through social media (often faster response)
3. Try CEO email (often redirected to executive support)
4. File BBB complaint (company may respond to avoid bad rating)

Step 3: File Disputes

1. Credit card chargeback: If paid by credit card
2. PayPal dispute: If paid through PayPal
3. Bank dispute: If paid by debit card
4. Platform dispute: If purchased through marketplace (Amazon A-to-Z, eBay Money Back Guarantee)

Step 4: File Regulatory Complaints

• FTC: ReportFraud.ftc.gov (won't resolve individual cases but tracks patterns)
• State AG: Consumer protection division of your state attorney general
• CFPB: ConsumerFinance.gov (financial products and services)
• Industry regulators: Airline (DOT), telecommunications (FCC), etc.

Step 5: Send Demand Letter

A formal demand letter often succeeds where informal requests fail. Include:

• Clear statement of facts and problem
• Amount demanded and basis
• Legal theories supporting your claim
• Deadline for response (typically 10-14 days)
• Statement that you'll pursue legal action if not resolved

Step 6: Small Claims Court

If all else fails, small claims court is designed for consumer disputes:

• Filing fees: $30-$100 in most states
• Dollar limits: $2,500-$25,000 depending on state
• No attorney required (often prohibited)
• Quick resolution: Usually within 30-60 days

Common Refund Situations

Online Purchase Never Arrived

• Check tracking (carrier may show delivered but item stolen)
• Contact seller for replacement or refund
• File chargeback if seller unresponsive (30+ days)
• FTC Mail Order Rule entitles you to refund

Item Not as Described

• Document with photos comparing listing to received item
• Contact seller for return authorization
• Seller typically pays return shipping for materially different items
• Chargeback if seller refuses (keep item for evidence)

Defective Product

• Check warranty terms (manufacturer vs. retailer)
• Request repair, replacement, or refund
• Implied warranty of merchantability applies even without express warranty
• Lemon law may apply to vehicles, appliances in some states

Service Not Performed

• Document what was promised vs. delivered
• Request refund for unperformed portions
• May be entitled to cost of corrective services from another provider
• Service contracts are fully enforceable—breach gives you damages

Subscription/Membership Charges After Cancellation

• Document your cancellation (confirmation number, email)
• Contact company with proof of cancellation
• Chargeback each unauthorized charge
• May be UDAP violation (pattern of unauthorized charges)

Frequently Asked Questions

Does a store have to give me a refund?

Not always. There's no general legal right to a refund just because you changed your mind. However, you're entitled to a refund if: (1) the product is defective, (2) the product doesn't match the description, (3) the store's posted policy promises refunds, (4) a cooling-off period applies, or (5) services weren't performed as agreed.

Can a store charge a restocking fee?

Generally yes, if disclosed before purchase. However, restocking fees typically cannot be charged if the product is defective or not as described. Some states limit restocking fees to a percentage (e.g., 15%) or prohibit them entirely for certain products.

How long do I have to request a refund?

It depends on the situation. Store policies typically allow 14-90 days. Chargebacks must be filed within 60-120 days. Warranty claims depend on warranty length. Breach of contract claims are governed by statutes of limitations (typically 2-6 years). Act quickly—delays hurt your case.

What if the seller went out of business?

Credit card chargebacks may still work since the card issuer pays you (and pursues the merchant). If you paid cash or debit, you may need to file a claim in the business's bankruptcy (if applicable) or pursue owners personally if fraud was involved.

Can I get a refund on a gift?

The store's return policy applies. Most stores will issue store credit without a receipt. Gift receipts often allow exchanges or refunds. The original purchaser usually has stronger rights (receipt, payment record) but can authorize you to return.

What if I paid with cash?

You lose chargeback protection but keep all other rights. Keep receipts. Store policies still apply. Consumer protection laws still apply. Small claims court is always an option. Cash payments make proving the transaction harder, so documentation is critical.

Can I dispute a charge I authorized but regret?

Generally no. Chargebacks are for fraud, non-delivery, or problems with merchandise—not buyer's remorse. Filing a chargeback for a legitimate purchase you just regret can be considered "friendly fraud" and may result in your card being flagged or terminated.