Clearing up the question of refund methods

vyle

I see a lot of threads where somebody says:

"I want a refund in cash, but shop will only refund to card, is this right?" or something similar.

The consensus is usually, "well it has to be the same refund method to stop money laundering, but we aren't sure really." -- and nobody seems to know if method means the same card, or simply the same type of card (debit to debit, cash to cash, credit to credit, etc).

Well, I was browsing the OFT site, and found this handy gem (on the trader side of the rules):

• 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.

So there you go. If you're getting a refund under the SOGA, them's the rules, but I guess if it's a refund under shop warranty, then shop policy takes effect, but there is no LAW stopping you refunding a debit card to cash, but you can't refund a cash payment to debit card, and credit cards exist in their own world.

texranger

as a retailer

• 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 * this is because it is the CC company that has made the payment and not the customer, also the retailer has a legal agreement with their merchant service provider that refunds must be mader to the same card, if this has been replaced then the retailer needs to call their MSP for authorisation to refund to replacement card*

• 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 * tthe customer can request a cash refund, but the retailer cvan refuse this and insist they refund to original card as the retailer has a legal agreement with their merchant service provider that refunds must be mader to the same card, if this has been replaced then the retailer needs to call their MSP for authorisation to refund to replacement card*

• paid by cash - methods of refund can be cheque or cash. * most refunds will be cash but a retailer can refund by cheque if they wish*

diablodvs7

Thanks this is useful. I was intending to try this in a shop soon as my GF has bought something on her debit card but it's easier for me to return so I was going to try for a refund on my debit card. Does anybody know if the cashier or the system checks you've given them the same card or just assume you're using the same one?

Oliver14

The thing is no matter what thr legislation says if the retailer refuses to refund in a method that you ask for how are you going to force them?

unholyangel

Oliver14 wrote: »

The thing is no matter what thr legislation says if the retailer refuses to refund in a method that you ask for how are you going to force them?

Chinese burn? Nipple twister? Wet willy? - said in jest of course....not being serious.

vyle

diablodvs7 wrote: »

Thanks this is useful. I was intending to try this in a shop soon as my GF has bought something on her debit card but it's easier for me to return so I was going to try for a refund on my debit card. Does anybody know if the cashier or the system checks you've given them the same card or just assume you're using the same one?

The receipt will have the last 4 digits of the card, but there are no specific checks in place.

bromleymum

I had a £6.99 hair clip break after it's first use.

I'd bought it from Monsoon a couple of weeks on a debit card, found the receipt and went back to the shop. They had sold out of the clip.

The till assistant refused to refund on the card as the numbers didn't match. They didn't match because it was a replacement card for one that had expired and my old card was still with the Woolwich and the new one a Barclaycard (after the Barclay bank takeover).

They offered me a credit note but I was entitled to a refund and requested one.

The manageress was called and she was so rude that I decided to dig my heels in and ask for an explanation.

She rang her Head Office (with ill grace) and said that it was to protect the company against money laundering and she advised all customers to keep their expired cards for at least 6 months to cover this eventuality. (??!!)

I said her advice was nonsense and contradicted the bank's standard advice but she was adamant. To be fair, she'd backed herself into a corner and I was getting on her nerves.

She then did agree to refund me on my card, as a gesture of goodwill, and called her assistant to complete the refund.

What a waste of time. I had the faulty product, the receipt, was entitled to a refund (under their rules), but because my card had updated, had a blooming nightmare.

This only refunding onto the original card is a pain in the posterior.