Credit card returns

samwardill

Has anyone noticed how some stores are getting very picky about credit card returns and refusing to make them on anything but the original credit card (often requiring the cardholder to be present)?

This is very inconvenient. In the case of faulty goods I don't this that this is legal. Even with unwanted goods I think they need to make clearer.

I'm not 100% sure why they do this. Presumably there is some type of fraud that they are trying to prevent. I can see absolutely no reason for requiring the cardholder to be present.

glentoran99

prevent money laundering, buy something and put money elsewhere, You shouldn't have someone elses card to be using it without them being present, You often need a pin or to sign to say you are them

Nick_C

It also prevents you abusing CC reward systems; eg by purchasing on a cashback CC and returning on a different card.

And the retailer may pay different charges on different cards.

samwardill

glentoran99 wrote: »

prevent money laundering, buy something and put money elsewhere, You shouldn't have someone elses card to be using it without them being present, You often need a pin or to sign to say you are them

There is no reason to require a pin or signature to credit a credit card. Anyone can credit a credit card account by bank transfer knowing just the card account number.

What sort of money laundering takes money from one credit card to to another?

DCFC79

Let's say a parent buys something on a credit card eg a game for a console and the son or daughter decides they don't like it so return it and present they're own debit card and ask for the refund to be put onto the debit card.

Another example, a burglar gains entry to a house as he sees goods in the boxes eg a games console, coffee machine. They come across the receipts and decide to return the goods for cash.

glentoran99

samwardill wrote: »

There is no reason to require a pin or signature to credit a credit card. Anyone can credit a credit card account by bank transfer knowing just the card account number.

What sort of money laundering takes money from one credit card to to another?

Well some do, as for crediting a card via bank account that's irrelevant a shop assistant isn't using a bank account they are using a card payment system.




Money laundering is about hiding the trail, The more places you can move it to the better and all of a sudden it becomes legit


Buy from retailer A on stolen card A


Return to Retailer A using legit card B


no trace, useable legit funds now on Card B,


Just an idea off the top of my head,

glentoran99

Or you could be simply want to transfer balance from A to B and avoid a fee


Buy on card A which has 0% on purchases, and return to card B,


bingo balance transfer no fee

samwardill

glentoran99 wrote: »

Well some do, as for crediting a card via bank account that's irrelevant a shop assistant isn't using a bank account they are using a card payment system.

Why is this irrelevant? If there is no need to require a pin / signature then it is unnecessary bureaucracy to do so.

glentoran99 wrote: »

Money laundering is about hiding the trail, The more places you can move it to the better and all of a sudden it becomes legit

Buy from retailer A on stolen card A

Return to Retailer A using legit card B

no trace, useable legit funds now on Card B,

Just an idea off the top of my head,

This sounds like it leaves rather a large footprint for any money launderer.

samwardill

glentoran99 wrote: »

Or you could be simply want to transfer balance from A to B and avoid a fee

Buy on card A which has 0% on purchases, and return to card B,

bingo balance transfer no fee

I can see why this is an issue. I think there has to be an exception for faulty goods though. I also think that there is no need to require the cardholder (or even the card) to be present.

glentoran99

samwardill wrote: »

This sounds like it leaves rather a large footprint for any money launderer.

Ya think? Your just placing funds on a card without verifying any identity etc, wheres the footprint?

samwardill

glentoran99 wrote: »

Ya think? Your just placing funds on a card without verifying any identity etc, wheres the footprint?

The identity is on the receiving card.

To be honest, I think the bigger opportunity is (as cited by glentoran99) churning funds between different cards. The arbitrage opportunity is greater now than before because different types of visa & mastercard credit cards now have different commissions. Personal cards are capped at 0.3% whereas corporate cards are not.