Refunds To Cards?

[console_2002]

Hi,

 

If a person pays for goods or services by a card credit or debit and subsequently requires a refund from the service or goods provider is there any law to state that the refund must go back to the card the payment was made on? or can they pay the amount back by cheque, cash?

 

This question is not related to claiming for payments against the card provider, simply if a supplier agrees to refund are they under any law to refund to the card used to pay.

 

If there are laws relating to this an someone point me in the right direction eg consumer credit act section xx

 

 

Regards

 

Console

[Sparklez30]

Not as far as I am aware I work in accounts and have never been informed if this is the case. I don't see how there could be as the card could be lost or stolen in which case you would not be able to be refunded to the same card?

 

Why is it that you wanted to know? It might possibly be a companies policy to ensure the funds are being refunded to the correct person?

[console_2002]

Thanks for your response,

 

my reason for asking is I have recently set up a new business which involves claiming back fees for people who have paid loan brokers, the response so far has been a complete sucess however all of the brokers have returned the monies direct to the client obviously in the hope ill give up and go away.

 

I am constantly reading consumer credit law in order to get all my legals correct some of the latest replies have been that goods/services paid using a credit or debit card must be refunded to that card, obviously I need to get one into court and make an example.

 

Regards

 

James Higgins

[Sparklez30]

I don't know law i'm affraid but I have refunded people that have paid via credit or debit card via cheque or even bacs on occassions and have never been instructed that this is a problem!

 

Having said that I would only refund back to the customer unless they specifically confirmed in writing that the refund should be made to someone else?

[Conniff]

There are rules under which the card can be used. If you use a debit card, that is basically the same as cash, it comes out of your account.

 

A credit card, on the other hand, is different. If you buy something, so borrowing on the card, the charge is as laid down for purchases, which is less than a cash loan. So if you buy something and get cash back, they are giving you a cash loan at purchase rates and that is agains the card rules which is why they always return the payment back to the card.

[IdaInFife]

why most companies return to source is to have proof the refund has been actioned so if someone claims for a refund that paid by card and the person refunds via cheque the person may still request a refund via card.

 

there is nothing stopping anyone refunding by any other means

 

ida x

[alanfromderby]

Console - I presume from what you say that you are working with consumer credit agreements (you mention "loans"), do you hold a consumer credit licence?

[console_2002]

I am not refering to consumer credit agreements no.

 

I refer to fees which people have paid up front to loan brokers in order to be procesed for a loan. Many loan brokers refuse to refund and issue terms and conditions which try to remove there obligation to the consumer.

 

I only require data protection registration in order to do this.

 

I cant post the website here but if you PM me ill send you the link which explains in full.

 

Regards

 

James Higgins

[Mark_Blackpool]

It has been a while since I looked at terms and conditions for merchant accounts however I believed it was the case that when a merchant igns an agreement with an acquirer to process debit and credit cards, there is normally a term/condition which states that a refund for goods/services purchased with a card must be refunded to that card.

 

It is not therefore a legal but a compliancy requirement for the seller to comply with the terms and is designed to for instance prevent someone using a stolen card to buy goods, then returning them for a cash refund.