urgent help needed

I purchased a furniture online (about $700) by the credit card and two days ago it was shipped to me. I found it was a damaged one , so I refused to accept it. Now the furniture company charged me about $300 for two-way shipping/handling fee and only like to return the rest of money. I don't think it is fair. what can I do now? Can I cancel the credit card payment? What is worst result I will get from the matter if I cancel the payment?

Thanks a lot.