Section 75 Claim taken a weird turn.

I had a S75 in progress that has just been rejected (I have a post about it in this sub). The retailer (a furniture supplier) ignored my complaint and went silent until my card provider nudged them. The retailer has now offered to refund me the initial cost of the faulty component, so my card provided has told me to accept that and then rejected my claim. However, the FO advised me I could claim compensation from my card provider, but the retailer and my card provider have rejected my request.

My Question: Can I accept the refund from the retailer and escalate the S75 to the FO to seek compensation only. Or do I have to ask the FO to look at everything and risk losing the refund?