@Christopher **********
You might find this absurd in your fantasy world, but in the real world embassies don't advertise to sell visa, only a visa as elite visa is advertised and marketed by commercial companies.
All other Thai visa can be applied for by embassies and some by Immigration, both non commercial and asking a fee for the service and not a price for a product.
You must comply to certain requirements to apply for a visa.
They clearly state that an application is no guarantee to get the visa you apply for.
So they do not fail in any way when they decide they not to issue the requested visa, so they have no obligation to specify any reason to anyone, also not to your card issuer.
The only thing they might have to prove is that they did process the application which is simple done by showing the send rejection or approval email.
The applicant will be asked to prove the service was not delivered and his communication about that with the embassy.
The applicant does not have this, and the embassy has proof they delivered service, so the card issuer will be denied a chargeback, and possible tagged as commiting fraud.