Can someone please tell me if a shop can sell an item cash then,when its faulty and returned within 24 hrs insist on refunding the price to a credit card? when asked what would happen if i had no card I was told the only option would be credit note to be used in the shop! can this be correct?? If not how do I prove that to the shop? Thanks, Paul..

Hi coppinpr,

Welcome To CAG

My understanding is that if you paid cash, then the refund should be cash. I can't understand how they can refund it onto a different method of payment.

Best thing might be to write a letter stating that the payment was made in cash and you want the refund in cash. Give them 14 days to agree to this or you'll

take the matter to Trading Standards. Send it recorded. If you want a complaint reference number to write on the letter. Give Consumer Direct a ring, lodge a

complaint with them. It sounds like they just want to issue you with a credit note.

It is quite clear........... a refund must be paid back by the same method you used to purchase the goods,the credit note option you can refuse to accept............Demand you paid by cash and you require a cash refund,Consumer Direct will confirm this I am sure..........is it an Independent Trader or a branch of a multiple ??????????????????.............FS

i have now talked to consumer direct and the position is this. They do not by law have to refund in the same way as the patment was made but they do have to offer a 'reasonable repayment option' and credit card or credit note is not reasonable and is indeed ileagal. They asked me to let them know how I got on. The manager of the shop (Maidenhead aquatics,Brighton) was VERy rude to me and told me there head office knew more than Consumer direct and hung up on me. I told this to consumer direct who have now passed the matter on to there enforcment officers. We shall see who knows most

Well done.......as you say we will see who has the biggest fist Consumer Direct or the retailer..................FS

Consumer Direct have Enforcement Officers? I donl't believe so - in much the same way that NHS 24 don't have hospitals. This is a call centre, and is there as a sop to consumers. They may refer the matter to the relevant agency that seems the most appropriate, but do not stop pursuit simply becasue CD have been advised. This will do nothing for your individual rights. Neither will CD take anyone to court, so in cases of dispute, you need to be resolute and not slacken.

Coppinpr...........I have checked the law out on this situation myself,they can offer a refund by a reasonable payment method Cash or Cheque,a refund made by Credit Card for a cash transaction contravenes the credit card T&Cs(in most cases) a credit note is not an reasonable option and does not have to be accepted by the customer.Phone Trading Standards they will give you guidance,and advise the retailer that you are involving TS due to their lack of understanding of shop law.................FS

Looking at a recent credit card Merchant Agreement, the wording on repaying is clear, but using the term 'contravene' is misleading. In the situation described, a retailer crediting a card I'd not disadvantaged. Someone paying £100 (say) in a credit card transaction wouln not get this back in full unless it was a CC refund. Since the merchant takes a hit on the processing fees for the card, possibly 4%, they are only credited with £96. By crediting to the card the charges are waived. If in cash, the merchant loses £4 on the refund.

The rules on refunds are more common sense than anything.