Wrong credit card credited

jonesMUFCforever

I agree with Terry - back in the day you had ONE credit card and ONE bank account so re crediting a transaction did not pose much of a problem.
I also think that the rule that a refund has to be made to the same card as the purchase (I know some retailers will pay back in different ways but they are normally large enough to take the hit if it turns out to be fraudulent) has been there since the year dot (*many years before money laundering had been invented).

cymruchris

Right credit card credited

Terry_Towelling

cymruchris wrote: »

Right credit card credited

Are you in the same boat as MonkeyBoy219, cymruchris?

Terry_Towelling

Notwithstanding my terrible memory, one of the things that used to happen (you'll have to take my word for it, I'm afraid) is that 'chummy' would make a large purchase on a card for something that had to be custom built (lounge/bedroom furniture etc), then very quickly revisit the store with a disaster/sob story (family bereavement, house fire, car accident etc) and say they needed to cancel the order and have the money back.

The retailer was rarely that perturbed because they hadn't parted with anything at that point and was happy to refund. Of course the cardholder had neglected to bring their card and said they'd be happy with a cash refund. They would then disappear with the cash never to be seen again leaving the card issuer with a big fat loss on an uncollectable account.

The Issuer would know nothing of the refund to begin with but would investigate the transaction and often discover the cash refund story. They would then issue a claim through what is known as the Compliance process against the retailer's processing bank for a breach of rules that had caused them to suffer a loss for which there was no right of recovery through Chargeback. The debt is then reassigned to the processing bank and thence to the retailer (probably) - who learns an expensive lesson.

cymruchris

Terry_Towelling wrote: »

Are you in the same boat as MonkeyBoy219, cymruchris?

My background is also in credit card payments and refunds - and the organisation I worked for was very much a 'you bought it on x card - it will be refunded on x card - no matter what the story'. So in the case of the OP - as much as they didnt have the card any longer, if it was the one used for payment - it's also the one used for refund. (Although not many people realise that's how it works) Even if you've closed the account with the bank, technically the card is still live for situations such as this. We'd normally recommend the customer contact the original issuing bank if they no longer had the card, and they always got their money back in the end.