If you properly disputed the credit card charge, your credit card company usually provisionally returns the money to your account until the dispute is resolved (one way or the other). I'm not sure why you're out anything at this point.

Are you replacing the damaged rug or simply returning?

Call your state's consumer division of the AG's office and get the law on this, i.e.: internet/interstate commerce.

Then email the rug company and tell them you have contacted the AG's office and will be moving forward with a small claims claim against them, along with bad reviews on the Internet, unless they come and get the rug and refund your money pronto!

I even managed to get a brand new mattress returned to scuzzy Sleepy's by going this route.

And get on the back of your credit card company to communicate with you about what is going on as well.