Have you ever disputed a charge before in your life? The issuing bank has no interest in getting the merchandise. If you return it to the merchant and they do not credit you, that is about the strongest case you can make since the merchant has everything they started with. When dealing with mail order disputes, shipping it back and requiring a signature on delivery (as with certified mail) is very common, but for a local store there you may not be able to find an address that will accept a package the requires a signature.
Alot of credit cards companies offer return protection now where if you aren't satisfied with the item. But regardless, the obvious thing is to call the credit card company up and have them advise you.
