Am I correct in thinking that a company is NOT suppose to bill your credit card until an item has actually shipped?

I just got my statement and there are charges on it for an order I placed a month ago and still haven't received. So much for one of my sons xmas presents.

-- Anita in NC (aholton@mindspring.com), December 17, 2001

Answers

Sort of right. Technically if you "agreed" to let the item be charged they can. Now if they havn't shipped it and it's going to be too late in coming, you can cancel the order and return it for credit if it has already been shipped. IF they decline your request for credit you can call your credit card company and get a chargeback. Make sure if you have to send it back you get some kind of evidence that you actually did. A UPS receipt or a signed statement from the postal cerk who mailed it back. The more you can prove you weren't happy with the service and returned the goods the easier it is for the credit company to act for you. Call the company you order the gift from first.

-- Ross (amulet@istar.ca), December 17, 2001.

I would call the company. I have ordered things and paid only for what shipped at the time. Anything that was back ordered was charged later, when it shipped. That doesn't seem right to me.

-- Stacey (stacey@lakesideinternet.com), December 17, 2001.

If it is going to take over 30 days, the company is not supposed to charge you until it is shipped. Under 30 days, they can charge it. When a partial order is shipped, it is common to charge the postage and handling for the entire order at that time, then charge for the backordered portion of the order when it is shipped.

You need to notify your credit card company immediately so that they can query the merchant on this and get it reversed.

-- GT (nospam@nospam.com), December 17, 2001.

This is typical of companies that are operating marginally - they're using your money AND YOUR INTEREST CHARGES to finance their business. I'm not saying that's the case here, but I've seen it happen, and you should attempt to sort it out with them as soon as possible. Maybe they've sent the goods. Maybe they'll reverse the charges until they do. Maybe their suppliers lied to them and the goods are still "on the water" from China. However, try to sort it out with the company, keep the evidence you've tried, and if you can't get satisfaction QUICK then contact your credit card company. Do it quick, or you might be faced with a 60 or 90 day waiting period before your credit card company will refund your money.

-- Don Armstrong (darmst@yahoo.com.au), December 17, 2001.

Follow up any phone conversations with a letter, (keep a copy) to protect yourself by documenting the conversation. Do this whether it is an instruction you are giving the merchant, or the credit card company. Your credit card company may agree to allow you to not pay that amount (specify without interest), until the order is fulfilled.

-- Rick (Rick_122@hotmail.com), December 17, 2001.

There's no rule regarding shipping being a prerequisite to charging a credit card. Had you sent a check, the check would have been deposited upon receipt. The credit card is much the same.

-- Gary in Indiana (gk6854@aol.com), December 17, 2001.

As to what I posted above, I think it is a law (not sure if it is federal trade commission or what) that pretty much applies to all mail order companies regarding credit card orders. "30 days" is the magic term here. They have to notify you in writing as well, if say it would have been shipped within the 30 days originally but later is not for some reason, so that you have a chance to cancel your order if you don't want to wait any longer for it.

As to checks, you're pretty much stuck, but you can see why a merchant would want the money before shipment of goods.

-- GT (nospam@nospam.com), December 18, 2001.