Its also called a CHARGEBACK!
According to the FTC, one James Eric Cox, through his company National Card Monitor, aka Nationwide Card Monitor, offered to obtain for consumers very low interest credit cards onto which they could move their current card debt.
After paying an upfront fee of between $499 and $599 on their current “high interest” card and digging their debt hole even deeper, the consumer would receive a form asking for the account information on all their current credit cards, including SSN and D/O/B.
Despite the claim of a “Money Back Guarantee,” in many cases when refunds were requested by consumers no refund was forthcoming. (Really?)
Contrary to the FTC’s perspective, there is, in fact, a Money Back Guarantee. The “Guarantee” comes from a merchant’s credit card processor. When banks and ISO s sign up snake oil merchants who deceive the public they are placing themselves liable for the “guarantee” which comes in the form of a chargeback by the consumer.
Something for underwriters to keep in mind.