Refunding onto same payment card

Optimist

Meepster wrote: »

Ok, then no, strictly speaking they aren't entitled to get a refund onto another card or cash. If the original card isn't present, the retailer can decide the method of the refund

My original statement stands if it is a refund under SOGA or some such.

Meepster

Optimist wrote: »

My original statement stands if it is a refund under SOGA or some such.

All SOGA states is that the customer must be refunded (obviously if a repair or exchange isn't possible or cost-effective, but that's not the question here) it doesn't state the customer can choose what form of payment the refund is given as. All it states is that you don't have to accept a credit note. It does not state you can demand it being refunded to another card, or as cash. Therefore it is in the retailers hands as to which method they use. (As long as they are not breaking the Proceeds of Crime act or the Money Laundering Regulations)

CrazyRatLady_2

Flyboy152 wrote: »

But that has nothing to do with the store.



But that has nothing to do with the customer.

No the first point isn't anything to do with the store - it's to do with the card companies who won't allow the store to refund transactions on different cards.

The second point is to do with the customer because if the store flout the card companies rules then the stores banking will be affected and there may end up being no store if their system for accepting card payments is terminated.

texranger

Meepster wrote: »

All SOGA states is that the customer must be refunded (obviously if a repair or exchange isn't possible or cost-effective, but that's not the question here) it doesn't state the customer can choose what form of payment the refund is given as. All it states is that you don't have to accept a credit note. It does not state you can demand it being refunded to another card, or as cash. Therefore it is in the retailers hands as to which method they use. (As long as they are not breaking the Proceeds of Crime act or the Money Laundering Regulations)

this is why stores give gift vouchers/cards. thease are not classed as credit notes so you cant refuse.

texranger

CrazyRatLady wrote: »

The second point is to do with the customer because if the store flout the card companies rules then the stores banking will be affected and there may end up being no store if their system for accepting card payments is terminated.

at first the MSP would cancel their agreement with the retailer, so the retailer will have no way of accepting CC/DC.

can you imagine how long Argos, Marks & Spencer etc. would last if they could only accept cash

Optimist

Meepster wrote: »

All SOGA states is that the customer must be refunded (obviously if a repair or exchange isn't possible or cost-effective, but that's not the question here) it doesn't state the customer can choose what form of payment the refund is given as. All it states is that you don't have to accept a credit note. It does not state you can demand it being refunded to another card, or as cash. Therefore it is in the retailers hands as to which method they use. (As long as they are not breaking the Proceeds of Crime act or the Money Laundering Regulations)

The Proceeds of Crime Act and the MLRs are a complete irrelevance here.

As I said previously if you pay by credit card then the retailer is entitled to insist on refund by the same method as it is a credit agreement

If the consumer pays by debit card and for some reason has not the card available when the payment refunded they are entitled to insist on cash.

It is not a situation that would happen often and I realise they will have a fight on their hands as most if not all retailers procedures call on a refund in the same manner as payment. Not gift cards or a credit note which are basically the same thing.




Quick search and here is the OFTs guidance on the matter

Methods of payment when a customer is entitled to a refund
The following points provide a brief overview of the law relating to how refunds can be given.
If a customer who is entitled to a refund as a result of faulty goods

• paid by credit card - you can insist that the refund is to the credit card used for the payment. This is because the credit card company paid you originally, and therefore you are entitled to refund them, not the customer directly
• paid by debit card - it is our view that you can offer to make the refund to the debit card used to make the purchase. Alternative methods of refund, for example cheque or cash, can be offered and may be requested by the customer
• paid by cash - methods of refund can be cheque or cash.

aldredd

Thanks Optimist - great find - did look at that website earlier but couldn't find anything.

I guess this bit is relevant to the discussion as well...

Credit notes

Customers do not have to accept a credit note instead of a full refund, repair or replacement if the item is faulty; see Your customers' rights on faulty goods. Where a customer is entitled to a full refund, repair or replacement you should not mislead them into thinking that a credit note is their only option.

Though whether a gift card & credit note is the same thing is another discussion - but for what it's worth, I would suggest that in this scope, they are.

aldredd

The credit card bit makes perfect sense now, and reminded me that when I worked in store, we could not accept CC payment for lottery tickets - as if you won anything it actually belonged to the CC company - not you.

texranger

Optimist wrote: »

Methods of payment when a customer is entitled to a refund
The following points provide a brief overview of the law relating to how refunds can be given.
If a customer who is entitled to a refund as a result of faulty goods

• paid by credit card - you can insist that the refund is to the credit card used for the payment. This is because the credit card company paid you originally, and therefore you are entitled to refund them, not the customer directly
• paid by debit card - it is our view that you can offer to make the refund to the debit card used to make the purchase. Alternative methods of refund,for example cheque or cash, can be offered and may be requested by the customer
• paid by cash - methods of refund can be cheque or cash.

look what i have highlighted in red. non of these are HAVE TO'S on the retailers part. a customer can request a cash refund but the retailer can refuse to give a cash refund

aldredd

texranger wrote: »

look what i have highlighted in red. non of these are HAVE TO'S on the retailers part. a customer can request a cash refund but the retailer can refuse to give a cash refund

Depends how you read it

I would say the only words relevant to your point are 'Our view'. And that appears to only relate to the line 'it is our view that you can offer to make the refund to the debit card used to make the purchase'

To me,
Alternative methods of refund,for example cheque or cash, can be offered and may be requested by the customer
reads that if I paid by debit card, I can request a cash refund