Paid on a credit card, service provider insists on refunding to bank account..?

JetP1

I paid for a service by credit card, which was not delivered.  The service provider insists they need my current account details to refund; I am saying they should refund to my credit card.  Has anyone experience of this?  Is it right?  It seems like a brilliant way to scam credit cards!  I am giving away such vast amounts of personal data in the name of 'covid precautions' that I am very suspicious.

born_again

They should be refunding the credit card, as any refund should be to the same source as payment.
But is this a oversea's co?

JetP1

Nope, a UK company, providing Covid tests at a very major airport.  I agree with your statement 'any refund should be to the same source as payment' but is there a legal or regulatory reference for this?

nick74

I'd be quite happy in this situation as I'd earn cashback on the credit card payment. Although they should strictly speaking refund back to the same payment source there is not any legal requirement for them to do so, and it is only they who are losing out by paying you back into your bank as it will cost them more in bank charges. Why not let them? There is no risk to you in giving out a sort code and account number and it will cost you nothing. 

JetP1

Thanks Nick, but because it’s a medical testing company, they already have a lot of very personal data, and the bank of information they’re building about me, even legitimately, is a crook’s wet dream.  They should know that, and take it into account; instead they insist on pushing for more.

victor2

They already have your personal data and credit card details. Although it does sound unusual that they won't refund to the payment source, I wouldn't be too concerned about giving them your sort code and bank account number. In the good old days of cheques, that information was on every cheque you gave out.

[Deleted User]

nick74 said:

I'd be quite happy in this situation as I'd earn cashback on the credit card payment. Although they should strictly speaking refund back to the same payment source there is not any legal requirement for them to do so, and it is only they who are losing out by paying you back into your bank as it will cost them more in bank charges. Why not let them? There is no risk to you in giving out a sort code and account number and it will cost you nothing. 

Is their merchant agreement not a legal requirement? 

Batesy1976

Deleted User said:

nick74 said:

I'd be quite happy in this situation as I'd earn cashback on the credit card payment. Although they should strictly speaking refund back to the same payment source there is not any legal requirement for them to do so, and it is only they who are losing out by paying you back into your bank as it will cost them more in bank charges. Why not let them? There is no risk to you in giving out a sort code and account number and it will cost you nothing. 

Is their merchant agreement not a legal requirement? 

No, it's a contractual requirement.

Nebulous2

Some holiday companies were doing this with Covid related refunds. One suggestion was that the credit card companies were clawing back money from them and they wanted to keep money out of their reach. 

Whilst unusual, I'd provide details to get my money back.