Thousands of consumers were left holding the bag — and out about $150 – when all-in-one cardmaker Plastc announced recently it was never shipping a product.
Is there any chance consumers can get their money back?
Yes. Even those who’ve already been told by their credit-card issuing banks that the charge is too old to dispute. Read on to learn about a little-known rule that gives credit and debit card customers up to 540 days to file a dispute in some situations. Even if you aren’t a Plastc victim, there’s a powerful consumer lesson to be learned here.
To refresh your memory, starting about four years ago, several firms announced products that promised to thin out Kramer-sized wallets everywhere — a single, digital credit card on which all other plastic cards could be loaded. New technology would let the makers of Plastc, Coin, and several others rewrite the magnetic stripe in real time, eliminating the need to carry around multiple credit cards. Optimistic buyers raced to preorder the gadgets. One by one, they were all disappointed, as so far, no all-in-one card has proved viable.
The makers of Plastc sure tried, however. At least, they said they did. Back in the fall, Plastc CEO Ryan Marquis took to Facebook to claim the firm had raised $9 million from 80,000 “backers,” and once again promised that success was around the corner. On April 21, Plastc gave up, announcing it was declaring bankruptcy. That left thousands of consumers wondering what would become of their preorders.
For the earliest backers, like Andrew Goodman, there’s probably very little hope.
“I’ve been a backer since April 2015 and certainly have no delusions of getting my money back,” said Goodman, who lives in West Chester, Penn. “I was given a flat ‘no’ from both Amex customer service and the third party they refer you to for complaints on purchases older than 12 months.”
The 540-Day (or 120-Day) Rule
But others, who gave Plastc their money a year or so ago, shouldn’t give up hope, even if they are initially rejected by their bank. A little-known rule governing most credit card transactions — so little known that even many in the banking industry don’t know it — means many consumers are eligible to dispute their transactions up to 540 days after they were initially posted.
Reddit threads and Facebook pages set up for disgruntled consumers are full of conflicting information, with some saying they’d managed to get a refund, while other say their card-issuing bank denied one, citing a 120-day time limit for disputes.
There is a 120-day time limit for disputes, but there is confusion over when that 120-day clock starts. The answer for Visa users, however, is quite clear on a document that sits on Visa’s website called “Visa Core Rules and Visa Product and Service Rules.” In a section titled “Chargeback Time Limit — Reason Code 30,” Visa tells participating banks and merchants that the clock doesn’t start until the purchased merchandise was supposed to be delivered — with a limit.
“If the merchandise or services were to be provided after the Transaction Processing Date, 120 calendar days from the last date that the Cardholder expected to receive the merchandise or services or the date that the Cardholder was first made aware that the merchandise or services would not be provided, not to exceed 540 calendar days from the Transaction Processing Date.”
Since customers were only told their orders wouldn’t be filled April 21, that rule suggests the 120-day clock starts then, not on the date of the transaction. In other words, while some banks have been telling Plastc buyers they can’t dispute their charge if it was processed earlier than January of this year, that Visa rule says folks who ordered as far back as November 2015 still have the chance to dispute. That’s a big difference.
So for clarification, I called Visa.
“Your read of the rule is correct,” said Visa spokeswoman Sandra Chu. “It’s 120 days from (the notification of non-delivery).”
Chu advised consumers who are told otherwise by their Visa-issuing bank to have a link to the Visa service rules handy and point customer service agents to that section. The rules, she said, are required for any credit or debit transaction that is processed on the Visa network.
What about other credit card issuers?
Mastercard did not immediately return my call for comment, but its “Chargeback Guide” contains similar language. In a section titled “Time Frame,” the criteria is listed as “15 to 120 days from the delivery/cancellation date of the goods or services.” Another section mentions a 540-day overall limit.
American Express media relations did not offer an answer to the question, and I was unable to find official documentation online. An old response from the firm’s official Twitter account hints that consumers – at least back in 2011 – had a long time frame to file disputes over purchases they never received as promised.
“For non rcvd orders u can disputed even after 65 days from charge.U are given 60 days from promise date of delivery 2 dispute,” the account said at the time. That contradicts the explanation Goodman received, however; if MagnifyMoney gets clarification, we’ll update this story.
Discover didn’t immediately respond to a request for comment.
Meanwhile, some consumers with even older-than-540-day transaction dates say they’ve received goodwill refunds for Plastc from their banks.
So the moral of the story is: Always call your bank and ask. And if you get no for an answer, don’t assume that’s the only answer.