Presuppose that a Card Holder charged or debited her credit card, to pay deposit money to a Merchant company for a good. But then Merchant bankrupts, before Card Holder ever obtains the good. Merchant has not refunded — and refuses to refund — Card Holder.
Do NOT discuss suing Merchant here. Presuppose the Card Holder can NOT recoup her deposit by suing Merchant. E.g. Merchant has no money to pay all its creditors, Card Holder is at the back of the queue of creditors, or Merchant's secured creditors are prioritized over Card holder's unsecured deposit.
My 2 questions
Is Issuing Bank unqualifiedly — and legally — obligated to refund Card Holder the whole amount of the deposit?
Or does Card Holder's success depend on the Issuing Bank's ability to get refunded by the (Merchant's) Acquiring Bank?