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Burgerwars

Do credit card issuers really investigate small charge disputes or just write the whole thing off?

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Recently I took a cruise on Norwegian Cruise Line (NCL).  I'm not into cruising, and this one wasn't that great, but that's another story.  Anyway, the photography department billed me $25 for a photograph I did not buy.  I go to the reception desk before disembarking, and they said they'll take care of that item on my invoice.  Of course, they did nothing, and billed me anyway.

 

On Citibank's website there's a place to dispute a charge.  In this case, I'm only disputing part of the charge, as the other junk I purchased on this cruise was valid.  I enter the amount I am disputing, and then I'm prompted with a question asking if I have proof the charge isn't valid.  I clicked "NO" since it's basically my word against NCL's word.  After I click the "submit" button the page says something like "Congratulations, you've been issued a PERMANENT credit for the $25."  Easy-peasy.  They didn't even ask me the reason or what I'm disputing in the charge.

 

Does Citibank just eat this, because I've been a long time customer and $25 is probably nothing for them to be bothered with, or do they deduct the $25 from what NCL gets (they should!)?  I'm thinking if I was disputing something big, like a $1,000 charge, it wouldn't be this easy.

Edited by Burgerwars

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I have had similar experiences.. seems that, if you have never disputed, do not dispute all the time, or if it is under a certain dollar amount, a credit is simply issued, overriding any objections by the merchant.

 

I have read reviews from some merchants that talk about how the card refund policy can go all the way, and force them to issue a credit/refund even when no valid cause exists to do so, for the face of customer service.

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I'd guess that it depends on the bank/CU. A few years back I was told by an NFCU rep that for any chargeback less than $50, they just write it off in favor of the customer.

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When I worked in the Customer Sales and Service Department (call center) for Citibank Cards, it was the company's policy to write-off small item disputes and simply issue a permanent credit, simply because the cost of processing and investigating the chargeback was more than the $20-$25 limit for an automatic credit. This was in 2006.

Edited by policebox

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5 hours ago, policebox said:

When I worked in the Customer Sales and Service Department (call center) for Citibank Cards, it was the company's policy to write-off small item disputes and simply issue a permanent credit, simply because the cost of processing and investigating the chargeback was more than the $20-$25 limit for an automatic credit. This was in 2006.

I was thinking about the same. Of course, if I went to the grocery store and bought $100 of groceries in $25 increments, then disputed all four charges, I might not get away with it.

 

 

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