Isn't a initiating a charge back after receiving goods fraud? I'm surprised there's no recourse for a merchant in this case.
You can try challenging it, but as a merchant, you usually lose. And it takes time and effort. At $40 per transaction, we made the decision to issue refunds without question, because we understood that it wasn't worth the effort to fight.
In our case, our service was delivered electronically, so we couldn't get it back after it was delivered.
It's like if your family member uses your credit card to use Turbotax and files their tax return. You can dispute that. You can say "I didn't authorize this!" and the chargeback is yours. Meanwhile, the tax return has been filed. There's no takebacks. (And technically, TT isn't allowed to reveal whose tax return was filed!)
I am certain that Amazon has this problem with digital downloads for music and video games. Or maybe they just want to capture more of the under-18 market. The more people they get to use their Allowance system, the more money they make and keep.