Microsoft Store refund denial appeal escalation options

I recently had a horrendous experience with Microsoft's refund department. Because the appeal options are not made very obvious, I wanted to lay them out here with the hope that this may help other customers. My problem (described in more detail below) was
actually with a game purchased from the Microsoft Store for Windows (Minecraft), but it is apparently handled through the Xbox refund department.

Step 0. You may think you should start by contacting Microsoft Customer Support by phone or chat, but, just like any support personnel in these Microsoft Answers forums, they will let you know that they have no ability to process refund requests. Only the
faceless "advocates" in the refund department can do that. You can try, though.

Step 1. Request the refund through the online Xbox refund request form. You should immediately get an email stating: "Your refund request has been assigned to
one of our Xbox advocates." You will then probably have to wait several days to get a response either accepting or denying your request. Based on what I experienced and what I have read in other online posts, it is very likely that your request will be denied
for no valid reason (perhaps the "Xbox advocates" are paid more to be advocates for Xbox, and not Xbox customers).

Step 2. Reply to the denial email and state your case justifying the refund. Again, you will probably have to wait several days for a reply and may not get one. In my experience, I received a second denial.

Step 3 (Option 1). If you are denied or wait about three days without a reply, write a "demand for refund" letter, stating that you may take legal action if you do not receive your refund, and fax or mail it to Microsoft's corporate
office:

Microsoft Corporation

One Microsoft Way

Redmond, WA 98052-7329

Tel: 425.882.8080

Fax: 425.706.7329

Step 3 (Option 2). Submit a "Notice of Dispute" form. The form and instructions on how to submit it are available on

Microsoft's Arbitration and Dispute Resolution web page.

Step 4. If Step 3 was successful, after several more days, you will receive another email--this time from a Microsoft "Accounts & Billing Support Advocate" re-opening your case. Eventually, they may set up a phone call, allowing
you to actually speak with somebody about your issue.

So, after just a few weeks and a fairly large amount of effort on your part, you may just get the refund you should have received immediately. In my case, the Xbox advocate people told me that the reason for my denial was that I
had exceeded my refund requests for the year, even though I had never in my life requested another refund. I asked for clarification on this when I finally spoke with the Accounts & Billing Support Advocate person. She said that was a mistake, and that Microsoft
would be speaking with the Xbox advocates who received the refund requests and provided incorrect information. I am sure this will straighten both of them out, so that they never make that mistake again.

Step 5 (optional).If the above path is not successful, and if you paid with a credit card that allows you to dispute charges, go ahead and dispute it. With many credit card companies, you can do this
online. If that option is not available or does not work, there should be an email or physical address to which you can submit your dispute. I think if the disputed charge is under a certain dollar amount (e.g., $50.00), then some credit card companies will
just issue the credit themselves immediately without even getting Microsoft involved. In other cases, they may submit the dispute to Microsoft. If the credit card company just gives you the refund and lets Microsoft keep the money, as well, that is not a very
satisfactory end to the dispute and ends up being a cost absorbed by everybody, but so be it.

If Step 4 and/or Step 5 do not work to your satisfaction, you can proceed to Step 6:

Step 6 (Option 1). Request the arbitration process described at the link in Step 3 Option 2. You may have to go to the separate
American Arbitration Association website to get specific information on how to file.

Step 6 (Option 2). Or, you can file a small claims lawsuit in your jurisdiction. Follow the rules in your jurisdiction, which may include serving Microsoft through their "Agent for Service" in your state.

Details on my dispute:

I already owned the game "Minecraft for Windows 10" in my Microsoft Account. My pre-teen son wanted to play multiplayer with me, but Microsoft requires owning separate copies of the game to do that. So, I bought a second digital copy of the game from the
Microsoft Store. However, we could not play multiplayer. I called Microsoft for assistance the same day as the purchase, and they said it did not work because both copies of the game are in my Microsoft Account, and the second copy needs to be in another account.
So, I made a child account under my account for my son, but Microsoft refused my request on the same day I purchased the second copy to transfer it into that account.

Instead, Microsoft said I would need to request a refund through the online form and then re-purchase the game with the other account. I requested the refund--again, within hours of making the purchase and never having successfully used the second copy.
Two days later, I received an email refusing to issue the refund, because I had allegedly "already received the allowed number of refunds this year." However, I have never requested a digital store refund from Microsoft in my entire life. I replied to the
email with an appeal. Five days later, I finally received another reply as follows: "Denied...The decision on your request still stands. We are not able to disclose further information regarding this refund decision."

So, I was stuck with paying for an extra copy of a video game that I cannot use, and Microsoft refused to tell me why they would not transfer the game to my son's account, or why they refused to give me a refund--until I faxed a legal demand letter to Microsoft's
corporate office.

:)