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Theoretical question about credit card refunds

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.

Reply to
Marx Peterson
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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.

Reply to
Peter Saxton

"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?

Reply to
Tim

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.

Reply to
GSV Three Minds in a Can

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

Reply to
Adrian Boliston

"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).

Reply to
Tim

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

Reply to
Adrian Boliston

"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.

Reply to
Tim

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

Reply to
Marx Peterson

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.

Reply to
Adrian Boliston

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