Refunds by cheque

nutmeg31415

Hi,

I was under the impression that it was a requirement that credit card / debit card payments were refunded back onto the card that they were made with, rather than being issued a cheque!?!

I have no idea why, but I thought is was some anti money laundering rule, but despite searching the net, all I can find is people saying it is a requirement, but no -one seems to say why, which rules state this, or link to any actual regulations.

Is this true, or is it some myth that people generally think is true, but not actually covered by regulations at all??

Thank you

Paul

NickX

nutmeg31415 wrote: »

I was under the impression that it was a requirement that credit card / debit card payments were refunded back onto the card that they were made with, rather than being issued a cheque!?!

I don't think that it is a legal requirement but most retailers insist of refunding transactions to the original card because this is the only way they will get their Merchant Fee refunded. Refunding by cheque would leave them out of pocket.

Eydon

I don't think it's a legal requirement.

I ordered a kitchen and bathroom from B&Q once and paid with my Egg Money card. When they failed to deliver after 6 months I asked for a full refund, and they sent me a cheque (which meant I got to keep the £130 cashback from the original purchase :beer:)

simongregson

I don't think that it is a requirement, but most merchants would want to do this as they will be credited the fees that they paid on the card transaction.

dtaylor84

Also, if the retailer refunds a card transaction by another means, the consumer could dispute the charge with their credit card company and potentially get double the money back off the retailer.

So no, not a legal requirement, but a sensible approach from the retailer's point of view.