If the retailer refuses to do something about it, and you paid by credit card then you may look to your bank to try and get your money back. Or maybe a charge appears on your account that is unauthorised. While your bank will generally try to help you resolve a dispute, there rules are governing what a credit card company can and cannot do. Nadia Green, head of Fraud and Collections at FNB Card explains what your rights are.

In the US, credit card purchases are protected under the Fair Credit Billing Act . This law gives the consumer the right to withhold payment on poor-quality or damaged merchandise purchased with a credit card. However, in South Africa the position is rather different, says Green; the consumer cannot withhold payment on poor quality or damaged merchandise. Queries of this nature would need to be taken up with the merchant directly.

In South Africa, these 'charge backs' are governed by regulations set out by credit card issuers such as Visa and MasterCard. Each charge back is treated on its own merits, as the regulations governing this process are extensive and each has its own unique set of circumstances. The most common reason for charge backs being made is as a result of duplication, which is where a merchant mistakenly processes a transaction twice.

Read the fine print
It is important for consumers to read the fine print of any contract before signing. We have seen cases where customers have signed contracts authorising a third party to debit their credit card. When the transaction is later processed, they expect the bank to reverse/stop it because they didn?t fully understand what they were getting into. However, the bank does not have the authority to override a legitimate contract authorising the debit.

Credit card users should always check their monthly statements for accuracy, and you have the right to query any transactions that they don?t recognise on the monthly statement. Once a dispute has been reported to the bank, a dedicated team does a thorough investigation into the matter; this determines whether or not a charge back can be done. The only rule governing charge back applications is that the case must be reported to the bank within 30 days of the statement being issued.

Banks are generally eager to help their clients with a dispute, but they are governed by the Visa and MasterCard rules and regulations and charging an amount back to another financial institution without a valid reason could result in an Arbitration case where they stand to be fined.

Keep all the paperwork
One the cardholder has lodged a dispute, the credit card company will investigate the matter. When they have received a suitable reply from the merchant, the query will be re-assessed and a decision made whether the cardholder or the merchant is liable. Should the bank receive a dispute for which they do not have a charge back right they will advise the customer to take the matter up with the merchant directly or to proceed with legal action if necessary.

The key to settling a dispute is not to charge into the retailer's office and demand resolution, a calm and reasonable approach will always win the day. If possible, take the defective merchandise back to the store. Otherwise, call the store and ask for a manager or supervisor. Keep records of each conversation.

"Always keep a paper trail, make notes of dates and times and who you talked to."

Fully document your case. In your letter, be sure to include your credit card account number, the closing date of the bill on which the disputed charge appears, a description of the disputed item and why you're withholding payment. Enclose a copy of your complaint letter to the merchant and any other documentation you may have supporting your position. Should a customer want to dispute a transaction, it should be done in writing within 30 days of receiving their statement or sooner.

Make sure it gets there.
Send your letter by certified mail, return receipt requested, to the credit card company at the address for 'billing inquiries' and not the address for payments. If you do not receive a response to your letter within 24 hours it is a good idea to follow up with your bank.

In South Africa, your credit card company will continue to charge interest until they have finalised the investigation and established whether the customer or the merchant is liable. Interest will then be reversed if it is found that the merchant is liable.

Don't delay in the mailing of your dispute letter, especially if it includes a payment. An issuer can take as many as five days to credit a payment not sent to the payment address. This will also prevent additional interest charges as well as late payment fees.