Refunding onto same payment card

bris

There are money laundering and merchant services issues regarding this, the retailers merchant service provider explicitly forbids the refunding onto a different card. If some retailers do it then they are risking their facility for accepting cards. It is perfectly legal to only allow the refund to the same card.

Flyboy152

bris wrote: »

There are money laundering and merchant services issues regarding this, the retailers merchant service provider explicitly forbids the refunding onto a different card. If some retailers do it then they are risking their facility for accepting cards. It is perfectly legal to only allow the refund to the same card.

Why would anyone bother to launder a few quid thorough a credit card? There maybe an agreement between the merchant and the card processing company, but the customer is not part of that agreement.

aldredd

bris wrote: »

There are money laundering and merchant services issues regarding this, the retailers merchant service provider explicitly forbids the refunding onto a different card. If some retailers do it then they are risking their facility for accepting cards. It is perfectly legal to only allow the refund to the same card.

hmm, yeah - there are some valid arguments there, but still don't buy it. There will always be occasions where it's not possible - card has expired, you've closed the account, had it stolen (as my case) - or someone else bought it for you & gave you the receipt.

I can see not refunding to another card, that's fine - but I can't see how it could be legal for a store not to refund you if you don't have the original payment card.

DCFC79

aldredd wrote: »

Doesn't help though when your entire wallet has been stolen and haven't had any replacements through yet though :cool:

which is why i said it can be done if the card used to buy an item has been lost/stolen or expired so teh shop will refund by other means.

texranger

aldredd wrote: »

hmm, yeah - there are some valid arguments there, but still don't buy it. There will always be occasions where it's not possible - card has expired, you've closed the account, had it stolen (as my case) - or someone else bought it for you & gave you the receipt.

I can see not refunding to another card, that's fine - but I can't see how it could be legal for a store not to refund you if you don't have the original payment card.

this is why they will fund in their own gift vouchers/cards. refunded to a different card is a clear breach of the merchant service agreement the retailer has with their merchant service provider and can end up with the retailer losing their merchant services.

if your card has expired and you have a new issued card then the retailer is supposed to call their merchant service provider for approval to refund to the new card

aldredd

texranger wrote: »

this is why they will fund in their own gift vouchers/cards.

Which is against consumer law (not in my specific case as it wasn't faulty, but certainly others)

texranger wrote: »

if your card has expired and you have a new issued...

And if you don't have a replacement card?
In this example, I won't have another replacement card for at least another week, as I also have to wait for a new pin etc.

Like I say - I get the whole not refunding onto another card - fine. But I maintain that I've not seen anything in consumer law stating they can refuse to refund you if you don't have the original payment card (but happy for someone to point me in the direction of a relevant part)

texranger

aldredd wrote: »

Which is against consumer law (not in my specific case as it wasn't faulty, but certainly others)



And if you don't have a replacement card?
In this example, I won't have another replacement card for at least another week, as I also have to wait for a new pin etc.

Like I say - I get the whole not refunding onto another card - fine. But I maintain that I've not seen anything in consumer law stating they can refuse to refund you if you don't have the original payment card (but happy for someone to point me in the direction of a relevant part)

in normal circumstances the pin will be the same as the old card unless you requested this be changed too.

they cant refuse to refund, but if you dont have the original card or a replacement then they can refund in whatever means they deem suitable, which is usually their own gift cards etc.

aldredd

texranger wrote: »

in normal circumstances the pin will be the same as the old card unless you requested this be changed too.

Mixture - some are sending me new PINs, other keeping existing. 1 Ask me if I thought the PIN had been compromised & needed replacing (said no)

texranger wrote: »

they cant refuse to refund, but if you dont have the original card or a replacement then they can refund in whatever means they deem suitable, which is usually their own gift cards etc.

Interesting - glad I asked - been a useful discussion. Now to see if I can find anything to back it up. (Not saying I don't believe you, just like to see things in black & white )

wealdroam

aldredd wrote: »

texranger wrote: »

this is why they will fund in their own gift vouchers/cards.

Which is against consumer law (not in my specific case as it wasn't faulty, but certainly others)

Not sure there is any thing in consumer law that says they cannot refund onto their own gift card, even if the goods are faulty.

If the customer agrees to accept a gift card, as in your case, what's the problem?

If the customer and retailer cannot agree on the method of refund, effectively meaning that the retailer refuses to pay the refund, then its off to court you go.
Would it ever get that far?

arcon5

Valli wrote: »

I returned an 81p item to the supermarket yesterday and had to have THAT refunded to my debit card. Must be some banking regulation.

*waits to see if anyone enlightens her*

Mind you someone who bought an e bay item from me wanted a refund but wanted it paid into her partners account as 'she wouldn't be able to get the money' if I refunded to hers (presumably hers is 'overdrawn or something') - had I done that she could have claimed I'd never made the refund and I could have ended up refunding twice!

nail + head

I think it's probably more to do with security also. So consumers can't claim a refund via cash for example then file a chargeback on their card.