Refunds query

Been googling around this evening although couldn't really find an answer.

If I buy an item in a store then have to return it for any reason, are the shop only able to refund via the original payment method? Tried to return an item this afternoon in Curry's, thought I'd ask for cash as I needed some and would save me having to stop at the busy supermarket afterwards although she was adamant that it was impossible. Was only £27 and I didn't have time to argue the toss.

More I think about it, can't understand why this was seemingly impossible?
 

Greg Hook

Moderator & Reviewer
Been googling around this evening although couldn't really find an answer.

If I buy an item in a store then have to return it for any reason, are the shop only able to refund via the original payment method? Tried to return an item this afternoon in Curry's, thought I'd ask for cash as I needed some and would save me having to stop at the busy supermarket afterwards although she was adamant that it was impossible. Was only £27 and I didn't have time to argue the toss.

More I think about it, can't understand why this was seemingly impossible?
Yes. You buy something with a stolen credit card. Then take it back and get cash for it.
You basically have free cash.
 

hippo99

Distinguished Member
Or a credit note would be the alternative I suspect. Eg if you were returning a gift (with receipt) someone gave you, they would give you a credit note/vouchers.
 

Monty Nine

Well-known Member
Shops don't even legally have to refund you that's only for distance selling regulations. Shops may only give you a credit note to spend at their shop.
 

SteveCritten

Distinguished Member
If you buy with cash they have to give cash back, if faulty. If bought with a card it has to be credited to the same card or has as been said credit note.
 

imightbewrong

Distinguished Member
Yes - it's for fraud/money laundering reasons
 

Astaroth

Well-known Member
Its mainly for fraud/money laundering but also the store is paying between 0.3% and 2% on a credit card transaction. If they do a proper refund, which is linked to the original transaction, then they get that fee refunded to them. If they were to give you cash or to transfer it to another card then they're stuck with still having paid the fee.
 

Epicurus

Well-known Member
The other side no one has mentioned is the card processing fee, if they refund to the same card the fee is refunded as well.
 

IronGiant

Moderator
or have they...
If they do a proper refund, which is linked to the original transaction, then they get that fee refunded to them. If they were to give you cash or to transfer it to another card then they're stuck with still having paid the fee.
 

imightbewrong

Distinguished Member
All moot as it's illegal anyway [emoji317]
 

Astaroth

Well-known Member
All moot as it's illegal anyway [emoji317]
Its not illegal at all. AML law is not prescriptive but talks about appropriate measures etc.

It'd be up to the merchant in question to defend their practices were there to be an investigation around money laundering. Whilst following "industry norms" helps show you're doing the right thing it neither is an automatic get out of jail free card nor does not following the norm mean you're automatically in the wrong.
 

imightbewrong

Distinguished Member
The point is AML is a far bigger deciding factor than a fee.
 

Astaroth

Well-known Member
The point is AML is a far bigger deciding factor than a fee.
I'd argue from a business perspective straight fraud rather than money laundering is the bigger concern. Clearly money laundering isn't a good thing but unless the business is proven to be complicit then the only thing they lose is the transaction fee.
 

The latest video from AVForums

Podcast: Marantz SR7015 & NAD T 778 AVR + Mission LX2 MKII Speaker Reviews, AV & Film News and More
Top Bottom