Refunds to Debit Card When Original Purchase Was With Cash

Mr_Wilks

I have received a refund to a debit card today for approx £1000 for some hifi equipment. The original purchase was made with cash, however, the shop where I bought the items from didn't have that amount of cash available so refunded to a debit card.

The refund voucher quite clearly shows at the bottom 'REFUND ACCEPTED' so I presume, the transaction was successful.

Will there be any problems with this amount being credited to my card account considering the purchase was with cash and not card?

BMN

I think technically the retailer isn't supposed to do this (I can't find a copy of the Visa Europe Operating Regulations but I'm sure it does prohibit this).

That's not for you to worry about though and the refund will still go through.

Mr_Wilks

Had a look at the UK Cards Association website

http://www.theukcardsassociation.org.uk/cards-transactions/transactional-processing.asp#content_1353

and found this with regard to refunds:

There may be occasions when a merchant needs to make a refund on a card transaction for purchases made. This should only be done using the card that was used for the original transaction. When providing refunds, merchants are advised not to give a cash or cheque refund as this is a common method used by fraudsters to appropriate cash from the card.

No mention of if the original purchase was with cash then refunded to a card.

Jvic28

I've known refunds made on card when the original payment was made in cash to be unsuccessful regardless of what it's said on the receipt. The bank will sometimes check that there is a corresponding transaction to the refund before processing, in the meantime, neither the retailer or the customer has the money.

Not sure how accurate that information is but that's what we were told when we rang up to find out where the customers refund had gone.

Mr_Wilks

I've remembered a laptop I took to PC World a few years ago that I had paid for with cash, was returned faulty and needless to say they didn't have the cash in store so they refunded my card and that went through 48 hours later.

Hellzapoppin

A refund to a card when there hasn't been a previous debit will be scrutinised by the retailer's bank and your card issuer, there's a good chance the refund won't hit your account and you'll have to go back to the store. Your bank won't be able to assist with a missing refund chargeback as that works by claiming the refund against the original debit and there isn't one in this case.

Richscott

Hellzapoppin wrote: »

A refund to a card when there hasn't been a previous debit will be scrutinised by the retailer's bank and your card issuer, there's a good chance the refund won't hit your account and you'll have to go back to the store. Your bank won't be able to assist with a missing refund chargeback as that works by claiming the refund against the original debit and there isn't one in this case.

If what you say is fact then how can you explain my own experiences?

Also one of the guys who works for me had a big win at the bookmakers last summer - the bookies didn't have sufficient cash to pay out all his winnings that day (well over 5G) so the shortfall (about 3G) was made to his debit card - went through without a hitch.

Also I contacted the retailer this morning who tells me he has carried out the same procedure many, many times without a hiccup and contacted his merchant services provider who told him there was nothing to worry about.

I have looked into this quite a bit since yesterday and had a look at the info on several of the merchant services websites and all of them describe more or less verbatim the do's and don'ts of processing a refund. The UK Card Association is a good example here is the link:-

http://www.theukcardsassociation.org.uk/cards-transactions/transactional-processing.asp#content_1353

To quote the section on 'Refunds'

"There may be occasions when a merchant needs to make a refund on a card transaction for purchases made. This should only be done using the card that was used for the original transaction. When providing refunds, merchants are advised not to give a cash or cheque refund as this is a common method used by fraudsters to appropriate cash from the card.An acquirer and terminal supplier will supply information on the correct procedure to use when making a refund."

No mention of 'if the original transaction was with cash don't do it' -only to ensure the original purchase card is the same as the card to which the refund is credited - if the original transaction was with a card in the first place.

[Deleted User]

Mr_Wilks wrote: »

I have received a refund to a debit card today for approx £1000 for some hifi equipment. The original purchase was made with cash, however, the shop where I bought the items from didn't have that amount of cash available so refunded to a debit card.

The refund voucher quite clearly shows at the bottom 'REFUND ACCEPTED' so I presume, the transaction was successful.

Will there be any problems with this amount being credited to my card account considering the purchase was with cash and not card?

Mr_Wilks wrote: »

I've remembered a laptop I took to PC World a few years ago that I had paid for with cash, was returned faulty and needless to say they didn't have the cash in store so they refunded my card and that went through 48 hours later.

You seem to be making a habit of paying for things by card and then getting a refund for them on your card ...

I can't believe any PC World shop wouldn't have enough cash in store to pay the cost of even the highest priced laptop they sell.

And I do seem to be the only one that can believe it's not butter ...

:cool:

JKSandy

http://www.adviceguide.org.uk/nireland/consumer_ni/consumer_common_problems_with_products_e/consumer_what_you_can_do_about_faulty_goods_e/faulty_goods_-_if_you_want_your_money_back.htm


"If you’re entitled to a refund, it’s normal for this to be given in the same way as you originally paid. For example, if you paid in cash, you’d normally be given a refund in cash. However, this isn’t required by law"

[Deleted User]

Richscott wrote: »

If what you say is fact then how can you explain my own experiences?

Also one of the guys who works for me had a big win at the bookmakers last summer - the bookies didn't have sufficient cash to pay out all his winnings that day (well over 5G) so the shortfall (about 3G) was made to his debit card - went through without a hitch.

Also I contacted the retailer this morning who tells me he has carried out the same procedure many, many times without a hiccup and contacted his merchant services provider who told him there was nothing to worry about.

I have looked into this quite a bit since yesterday and had a look at the info on several of the merchant services websites and all of them describe more or less verbatim the do's and don'ts of processing a refund. The UK Card Association is a good example here is the link:-

http://www.theukcardsassociation.org.uk/cards-transactions/transactional-processing.asp#content_1353

To quote the section on 'Refunds'

"There may be occasions when a merchant needs to make a refund on a card transaction for purchases made. This should only be done using the card that was used for the original transaction. When providing refunds, merchants are advised not to give a cash or cheque refund as this is a common method used by fraudsters to appropriate cash from the card.An acquirer and terminal supplier will supply information on the correct procedure to use when making a refund."

No mention of 'if the original transaction was with cash don't do it' -only to ensure the original purchase card is the same as the card to which the refund is credited - if the original transaction was with a card in the first place.

If we are to believe you/the op a card was not used to make the original transaction so reiterating a non-relevant clause is pointless.

I think you need to find yourself a new bookie.

The bookie accepted your bet knowing the odds and so the risk he was exposing himself to.

The bookie should have have made provision to be able to pay you when he knew his bet turned bad. The fact he didn't is a rather poor reflection on the him.

What would have happened if you didn't have any cards - he'd have been real stuck then. :eek:

I think you should name & shame so we can all ensure we avoid him in future.

Richscott

darkfield wrote: »

You seem to be making a habit of paying for things by card and then getting a refund for them on your card ...

I can't believe any PC World shop wouldn't have enough cash in store to pay the cost of even the highest priced laptop they sell.

And I do seem to be the only one that can believe it's not butter ...

:cool:

That has absolutely nothing to do with the requirements of processing a transaction. I think I personally have had occasions to have refunds issued for faulty merchandise maybe 3 or 4 times in the last 20 years!