Missing delivery leads to credit card chargeback dispute

Mr. D used a credit card issued by Bank A to pay for online purchases from a Chinese e‑commerce platform in June 2025. 

The seller provided Mr. D with a tracking number shortly after the purchase. However, the tracking information never showed any shipping activity beyond its initial creation. The estimated delivery date passed without the goods being delivered. Mr. D attempted to resolve the issue by contacting the seller through the platform, but the seller did not provide a meaningful response. Mr. D did not receive a refund or a replacement. 

Mr. D submitted a chargeback request to Bank A in July, on the grounds that he had not received the goods. To support his dispute, he provided documentation showing that the tracking information had not updated and that the expected delivery date had passed.  

The bank applied a temporary credit while it reviewed the dispute. Following its review, the bank informed Mr. D that it had closed the chargeback and would not refund the transaction because it said that the merchant provided proof of delivery showing that the goods were delivered by Canada Post to Mr. D’s address in July. Based on this information, Bank A advised that it did not have recourse to recover the funds and the temporary credit was reversed in October. 

Dissatisfied with Bank A’s response, Mr. D asked OBSI to investigate. 

Complaint upheld 

During the investigation, we identified discrepancies in the merchant documentation that Bank A relied on to close the dispute. The merchant’s invoice showed two items: wireless headphones and a perfume bottle, each with a different tracking number. However, the shipping evidence only supported delivery of the perfume and did not show delivery of the headphones. 

OBSI concluded that the chargeback had been resolved without adequately determining whether the merchant demonstrated delivery of all the disputed goods. Mr. D confirmed he was only disputing the delivery of the headphones. Based on the available evidence, OBSI proposed that Bank A reimburse Mr. D the cost of the headphones, plus applicable interest.  

The bank agreed with our recommendation and Mr. D accepted the offer.