Theoretical question about credit card refunds

Jul 25, 2004 9 Replies
M

I while ago I bought something by mail order, didn't work so I sent it back. I paid by credit card and it cost me £25. When I sent it back I was told the amount would be refunded to my credit card.



When I got my statement they had actually refunded £250.00 instead of £25.00 but the day after they charged £225.00 to my credit card, obviously someone had put a 0 too many and had charged the difference the next day when they noticed.



I've been refunded what I'm owed so there is no problem but out of interest what would happen if I disputed the £225.00 charge with my bank? I'm not going to try it but I'd be interested to know what would happen.


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P

The bank would ask the merchant for an explanation. They'd be given one and the bank would say they think it's ok and if you object to let them know.

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T

"Peter Saxton" wrote

What if he asked the CC company for the slip with his signature on, which authorised the 225 payment? Wouldn't they have a bit of a problem?

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G

No more of a problem than they'd have producing the signature for the first £25 .. this was a mail order 'customer not present' transaction.

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A

Customer Note Present (mail order) does not require signature.

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T

"Adrian Boliston" wrote

Yes, and they are even easier to dispute because the merchant does not have the same rights with CNP - chargebacks are allowed even if merchant "follows all the rules" (unlike when customer is present & signs).

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A

If it all nets off to zero (25 DR + 250CR + 225DR = 0) then they would effectively be disputing a zero charge!

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T

"Adrian Boliston" wrote

Nope - you are assuming that they'd also dispute the 250 credit, and for that matter the initial 25 debit. Obviously, we're just talking about the single debit for 225.

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M

But the bank will chargeback any CNPs that the customer disputes.

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A

If a customer were to dispute a cnp they know to be valid then this I assume would be attempted fraud, although the chances of it being proven are probably remote as the customer can claim ignorance I expect.

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