I was recently charged a $5 fee in error by a California based tech company. I disputed the charge via app and they issued me a “refund” in credits for future use of their service. I have not been able to contact the company in regards to getting my payment method refunded. I’m upset at this shady business practice, because I am out of the $5 for their error no matter what and the only way I can experience the refund is if I use their service again. Personal feelings aside, I’m genuinely interested if this is a legal way to conduct business.
Can a company erroneously charge customers and issue credits as refunds instead of refunding the payment method directly?