I have posted this question a few times, but have not received any responses at all. If possible, I would really appreciate some insight on this situation. Thank you.

The customer purchased a non-refundable international trip with his cobrand credit card. Within a month after purchasing it, he received notice that the travel agency he purchased it from had been shut down by the government and that he would not receive the trip. He was told that he would not receive a refund from the travel agency because it was non-refundable and he had not purchased the trip cancellation insurance. The customer wrote to us well within 60 days of the statement on which the charge appeared asking for credit for services not received, and provided all the documentation showing what had occurred. He had not paid anything on it before we received his dispute. Aren't we obligated to credit his account for the cost of the trip since he is not going to receive what he purchased (through no fault of his own)? I feel like this would qualify under both Reg Z 1026.12 and 1026.13. (Please assume it meets all the regulatory limitations such as being sent to the correct address, and the distance restrictions, etc. found in Reg Z 1026.12(c)(3)).

I believe this issue is covered under MasterCard and Visa Zero Liability rules. It's not an unauthorized transfer, but it is an issue where the goods or services were never received.

I'm going to request this be transferred to a different forum where you might get better answers...but your subject header already may not attract the correct attention as it's not specific.

Thank you so much for the response. I had actually posted this question twice before under a specific header, but didn't receive any responses, so I thought I would use this header in an attempt to call attention to it. What forum do you think this should be transferred to? Thanks again!

I thought operations and requested that, but I see it didn't move!

I'll try to post it there. Thank you very much!

I believe you originally wrote into the Gurus as I recall replying to this or a very similar email. Credit cards, unlike debit cards DO care about satisfaction with the product or services. I do not know why Reg Z wouldn't apply and would want an explanation from those internally who say it doesn't. To the idea that it's a nonrefundable transaction, that actually means if your customer cancelled it's nonrefundable. The travel agent is not allowed to steal the money by saying it's nonrefundable. V/MC should be able to go back on whoever received the funds, but those rules are more a chargeback issue and I am not well versed in those rules.