In Reply to: AP refund - more info please posted by DW Zebra on Friday, 6. January 2006 at 21:51 Bali Time:
The card does not need to be a gold card. Just a mastercard or a Visa and because the goods or service was not delivered it is essentially in breach of the contract between parties.
All banks will issue a chargeback for undelivered goods or service.
I know members are saying not travel agents fault, which is true, but a contract has been broken with the none supply of goods.
If people had purchased carpet through the local carpet shop and they had paid the money for this and the carpet shop had ordered and paid for the carpet from manufacturer and then the manufacturer went bankrupt I am sure a lot of people would apply for a charpeback on their credit card.
Unfortunatley it is the way of business and being a middle man.
For 20 years my ex and I owned 3 business's that were not cash pay up front business but supply the goods and invoice the purchaser.
We lost a lot of money over the years, with the purchasers for one reason or another not paying their bills, but we had to pay for the goods to our supplier.
It is part of business and if you want to be part of it, you accept the losses as hard as it is.
You balance out the good with the bad, as for all the times that we did get paid we made a good profit which was more than our losses or we would not have been interested in being in business.
Yes travel companies will be incurring losses with chargebacks at the moment but they also enjoy profits with all the other customers.
Again noone goes into business without knowing this can happen. It is a calculated risk that you take.