Hi all,
Could anyone advise if you LEGALLY are required to return funds to the original card of the purchase?
I work retail and we just had a clown make a scene because we wouldn't return his credit card purchase onto his EFTPOS card for obvious reasons.
Any clarity would be fantastic
"A consumer is generally entitled to receive any
refund in the form of their original payment. For
example, if they paid for an item with a credit card,
it is reasonable for the seller to give the consumer
a credit card refund."
https://www.accc.gov.au/system/files/Warranties%20and%20refu…
Doesn't seem like its the law but i guess its up to the business to make the decision end of the day. I work in sales and if a customer's card has been cancelled and they request the refund on a different card, we normally write a cheque and send it out to the customer.
Yeah, that all seems reasonab…
we normally write a cheque
WTF
"cheque's in the mail"
.
Coles refused to do that for me. They insisted me to give them the original card even though it had been cancelled.
Depends on the processor agreement
https://www.nab.com.au/content/dam/nabrwd/documents/terms-an…
Nab says refunds must be done on same card
If a cardholder returns goods that have been purchased with a card, you must refund the
transaction back to that card and NOT provide the refund to a different card, or in cash or
cheque. If you do not follow this procedure you may be exposed to fraudulent transactions.
Following correct refund procedures will also provide you with proof that the transaction
has been refunded if a dispute arises.
Been getting refunds using different cards, no problem so far.
The obvious reasons is because the customer can double dip.
Or be a fraudster.
Yeh i think the main reason is money laundering/fraud. I think refunding to a different credit card can usually be OK, even though there is still some risk, but refunding to a debit card is a whole different form of payment.
Or be looking for an interest-free cash advance from their credit card?
Retailers might like you to do it but money is money
It's common practice to put it back on the same card cause it's just easier for the seller/buyer, also if a dispute arises then its easier for the bank to find the debit/credit.
To put it back on the same card, it's NOT the law to my understanding, it's a company policy.
When I worked at retail, we didn't allow different card refunds but we would offer a cash refund instead if the customer didn't have the original card. Plus our system couldn't double up on refunds because the receipt would block us from refunding a second time.
Couldn't someone technically purchase a $1200 computer on a credit card, claim they lost the card and get $1200 in cash, in theory getting a free cash advance?
What place offers refunds on $1200 computers? Wouldn’t it have to be faulty or some other reason to warrant a refund? Pretty much most places I’ve seen don’t do refunds for change of mind.
30 days change of mind at mine.
As long as you have your receipt and product is in good condition.
People take advantage of it all the time, including with card fraud.
But like a lot of people on here are saying, it's not my job to stop that, but when I can I try.
@domadgee: Interesting! thanks for the insight. I've only ever seen clothing retailers happy to do change of mind refunds.
When I worked in retail, if the customer didn't have the original card, the refund would go onto a gift card
Costco will hand you the refund in cash before you even get your card wallet out.
Are you referring to this guy in Marsden Park who can do membership and refund at the same time as he is very fast :)
Yeah I read this thread and couldn't really find a legal foot to stand on when this guy undoubtedly complains online about us tonight 😓
It's not illegal technically
You open yourself up to fraud, customer buys something with a newly stolen credit card, Returns it and has it put on their ok card.
It's in the Terms of your Merchant Agreement. Doing so would likely breach the contract.
Customers like that just say No. Don't engage, don't argue, don't reason. Just say No, sorry. Otherwise you just fuel them.
Was it a high value purchase returned nearly immediately? Used to be a common ploy yonks ago for credit card holders to avoid cash advance fees when they were in dire need of some quick cash.
Its frowned upon by the merchant, but no its not illegal, and if you refuse to refund it to a different card, they may have anti-competitive grounds to report it to the accc. However if its fraud related, why try to prevent the crime ? It's like trying to stop a gunman in your store, your job isnt to prevent crime, its the polices job to rectify the issue when it arises.
why try to prevent the crime ?
Exactly. For that reason I keep the cash register open, on top of the counter. Any shortages its the polices job.
No card, no refund.
Call security if they make a scene.
No you don't need to have the refund processed on the same card.
Card issuers & retailers prefer it done this way to avoid fraudulent behaviour.
I did a return at kmart yesterday on a different card with no issues
Usually a stolen credit card and then they ask you to put it on their eftpos card. Don't do it
Did you check with your finance/accounting team?