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Old Jun 18, 2019, 1:45 pm
  #1  
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Nonrefundable seat upgrade charges when award flight canceled

I had to cancel two international TAL award flights later this summer, and opted to have the miles deposited into my AA account ($175 fee for each flight for the two of us). We had upgraded to better seats on two flight segments, essentially the overnight portions. These upgrade charges are not refundable, as I understand it. What would happen if I dispute the charges for the upgrades with the credit card used? AA is unable to deliver the services that were paid for.
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Old Jun 18, 2019, 1:53 pm
  #2  
 
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I believe that in that case the seat charges are refundable. You should be able to submit for a refund at https://prefunds.aa.com/refunds/
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Old Jun 18, 2019, 2:11 pm
  #3  
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Originally Posted by Reindeerflame
I had to cancel two international TAL award flights later this summer, and opted to have the miles deposited into my AA account ($175 fee for each flight for the two of us). We had upgraded to better seats on two flight segments, essentially the overnight portions. These upgrade charges are not refundable, as I understand it. What would happen if I dispute the charges for the upgrades with the credit card used? AA is unable to deliver the services that were paid for.
I think the AA rules in this situation allow AA to refund the money.
The credit card chargeback issue is something else. If you agree to buy something that is nonrefundable, it would be wrong to attempt a credit card chargeback in order to obtain a refund, and you would probably be unsuccessful as the company you purchased the non refundable item from would simply provide the card issuer with the published information stating this.
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Old Jun 18, 2019, 3:35 pm
  #4  
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Originally Posted by MathMusic
I believe that in that case the seat charges are refundable. You should be able to submit for a refund at https://prefunds.aa.com/refunds/
Not according to the terms listed at https://www.aa.com/i18n/fragments/me...ExtraTerms.jsp

Originally Posted by AA
Paid Seats Terms And Conditions

In the following paid seats terms and conditions, a Main Cabin Extra seat and a Preferred seat will both be referred to as a paid seat.
•Paid seats are non-refundable if you change, cancel or miss your flight.
.
.
.
Originally Posted by Reindeerflame
I What would happen if I dispute the charges for the upgrades with the credit card used? AA is unable to deliver the services that were paid for.
AA was perfectly able to provide the service that was paid for - you chose not to take advantage of the service by cancelling
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Old Jun 18, 2019, 7:24 pm
  #5  
 
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Originally Posted by Reindeerflame
I had to cancel two international TAL award flights later this summer, and opted to have the miles deposited into my AA account ($175 fee for each flight for the two of us). We had upgraded to better seats on two flight segments, essentially the overnight portions. These upgrade charges are not refundable, as I understand it. What would happen if I dispute the charges for the upgrades with the credit card used? AA is unable to deliver the services that were paid for.

I think this falls into the category of never cancel up front - wait it out
If you get a schedule change, you can easily say that the flights no longer work and you can get a full refund - which includes the seat fees as it was their fault for the schedule change
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Old Sep 27, 2019, 11:45 am
  #6  
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Update on Chargeback Request for Seat Upgrade Fees on Canceled Award Trip

I requested the credit card issuer to do a chargeback for the AA seat upgrade charges connected with our canceled award trip. As mentioned above, AA canceled our award travel for a fee of $175, and redeposited our miles. However, there was some difference of opinion as to whether we should also receive a refund of the associated seat upgrade charges.

90 days have passed, and the charges in question have not been reposted to my credit card account.

I felt the chargeback was warranted, since the airline was no longer able to provide the services in question once they canceled the underlying award trip.

It seems in some cases the chargeback system works in the consumer's favor.

Last edited by Reindeerflame; Sep 27, 2019 at 1:08 pm
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Old Sep 27, 2019, 12:07 pm
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AA didn't cancel the trip. You cancelled it. There's a massive difference. If AA had cancelled the trip then I'd have assumed that there would be no charge to redeposit the miles, and any ancillary charges (seating, co-pay etc.) would also be refunded. I think it's disingenuous at best to have reclaimed the seat charges via a charge back against your credit card.
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Old Sep 27, 2019, 12:18 pm
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Originally Posted by Geordie405
AA didn't cancel the trip. You cancelled it. There's a massive difference. If AA had cancelled the trip then I'd have assumed that there would be no charge to redeposit the miles, and any ancillary charges (seating, co-pay etc.) would also be refunded. I think it's disingenuous at best to have reclaimed the seat charges via a charge back against your credit card.
Agreed. And, in all likelihood, AA still got paid for the charges and the CC issuer just decided to eat it. I'm all for disputing charges when the vendor fails to deliver, but, in this case, it was the purchaser, not the vendor, who decided after the fact the terms of sale were not to his liking.
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Old Sep 27, 2019, 2:23 pm
  #9  
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This is why we can’t have nice things.

if you buy a basic economy ticket and cancel it, the airline also doesn’t deliver the service and doesn't refund any money. Is a chargeback warranted there?
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Old Sep 27, 2019, 2:52 pm
  #10  
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Originally Posted by USFlyerUS
Agreed. And, in all likelihood, AA still got paid for the charges and the CC issuer just decided to eat it.
Exactly. If anyone wonders why their annual credit card fees keeps going up, this is a perfect example.
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Old Sep 27, 2019, 4:29 pm
  #11  
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Originally Posted by GFrye
Exactly. If anyone wonders why their annual credit card fees keeps going up, this is a perfect example.
Not really - There is no reason for the card company to choose to make the payment to the cardholder - if dispute upheld, then merchant doesn't get the money - if dispute rejected, there is no reason not to re-apply the charge to the cardholder

I have even seen card companies that have a fee applicable to cardholder for failed disputes

What good reason is there for the card company to pay for the purchase that the cardholder is liable for
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Old Sep 27, 2019, 5:14 pm
  #12  
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The NYT article estimates this costs lenders $10 to $40 per dispute, so if the questionable transaction costs less than that, the bank may cut its losses just to save time and maybe a few bucks. They won’t contact the merchant at all, instead just assuming the customer is right, and cover the charge themselves.

https://www.moneytalksnews.com/what-...t-card-charge/
... and if the lender looks to offset such costs, adjusting the annual card fees is an easy option.
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Last edited by GFrye; Sep 27, 2019 at 5:20 pm
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Old Sep 27, 2019, 5:27 pm
  #13  
 
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Originally Posted by Dave Noble
Not really - There is no reason for the card company to choose to make the payment to the cardholder - if dispute upheld, then merchant doesn't get the money - if dispute rejected, there is no reason not to re-apply the charge to the cardholder
Often, if the disputed charge is less than a certain amount and the cardholder is not an habitual disputer, the CC issuer eats the charge as it would cost more to research it. The merchant still gets paid.
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Old Sep 27, 2019, 7:41 pm
  #14  
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Originally Posted by mvoight
I think the AA rules in this situation allow AA to refund the money.

The credit card chargeback issue is something else. If you agree to buy something that is nonrefundable, it would be wrong to attempt a credit card chargeback in order to obtain a refund, and you would probably be unsuccessful as the company you purchased the non refundable item from would simply provide the card issuer with the published information stating this.
Originally Posted by Dave Noble
AA was perfectly able to provide the service that was paid for - you chose not to take advantage of the service by cancelling.
IMO it would be fundamentally dishonest to request a refund after OP already agreed to a non-refundable purchase. While s/he can probably bully the credit card issuer into refunding the charge (and thereby eating charge), it's hardly fair.
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Old Sep 27, 2019, 8:42 pm
  #15  
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Originally Posted by Reindeerflame
I felt the chargeback was warranted, since the airline was no longer able to provide the services in question once they canceled the underlying award trip.
AA was completely able to provide the services you paid for, which was a non-refundable seat upgrade.

"They" canceled?

Originally Posted by Reindeerflame
I had to cancel
You're playing very loosely with the facts. To put it kindly.
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