Returns, Refunds and Credit Card Disputes in the US: What the Law Says

The short version

• There's no general federal right to return something just because you changed your mind. Store policies decide.
• If it's defective, warranties, including implied warranties, can give you a repair, replacement or refund.
• The FTC's Cooling-Off Rule gives you 3 days to cancel certain sales made at your home or at temporary locations.
• Paying by credit card lets you dispute charges under the Fair Credit Billing Act.

Changing your mind: store policies

Returning something that works but that you don't want is up to the store's return policy: how many days, whether you get cash or store credit, restocking fees, and which items are final sale. Check it before you buy, especially for electronics and sale items. A few states, such as New York, require stores to display their refund policy, and give you more rights if they don't.

If it's defective

A defective product is a warranty question, not a returns-policy one. Most sales by a business carry an implied warranty that the product works as that kind of product should, and many come with a written warranty too. See US product warranties explained.

The FTC Cooling-Off Rule

If you buy something for $25 or more at your home, workplace or dorm, or for $130 or more at a temporary location, such as a hotel room, convention center or fairground, you can cancel until midnight of the third business day after the sale. The seller must tell you about this right and give you a cancellation form. It doesn't cover purchases made online, by mail or by phone, or in the seller's normal place of business.

Ordering online or by phone

The FTC's Mail, Internet, or Telephone Order Merchandise Rule requires sellers to ship within the time they promised, or within 30 days if they didn't say. If there's a delay, they must tell you and let you cancel for a full refund.

Disputing a credit card charge

The Fair Credit Billing Act lets you dispute billing errors on a credit card, including charges for goods you didn't accept or that weren't delivered as agreed:

• Write to the card issuer's billing-error address within 60 days of when the statement with the charge was sent to you.
• The issuer must acknowledge your dispute within 30 days and resolve it within two billing cycles, and no more than 90 days.
• You don't have to pay the disputed amount while it's investigated.

For problems with the quality of goods, you may also be able to withhold payment if the purchase was over $50, made in your home state or within 100 miles of your billing address, and you first tried in good faith to sort it out with the seller.

Debit cards

Debit cards have strong protection against unauthorized transactions, but no federal right to dispute the quality of something you bought. Your bank may still help through a card network chargeback, which is voluntary and has time limits, so ask quickly.

Keep the paper trail

Every one of these routes runs on evidence and deadlines: the receipt or order confirmation, the delivery date, the statement date for a dispute, and the warranty terms. Keep them together with the product from the day you buy it.