Anyone know the rules/laws on refunds.

Dave7

Legendary Member
Location
Cheshire
Like many we are waiting on a refund for the cancelled holiday.
We paid with credit card then paid the card off from our bank account.
Now I dont want £2K being refunded to the credit card as it would just be stuck there**.
Some places seem to insist that refunds must go back to the CC it was paid by.
I got a refund for some faulty shorts from my LBS recently and they were happy to put it on any card I chose.
**thinking about it there must be a way of drawing cash from the CC but I have never done so.
Anyone know what my rights are?
 

Milkfloat

An Peanut
Location
Midlands
Why not just get the refund to your credit card and just use that on future spending? I am pretty sure that the reason they have to refund back to the original card is for money laundering protection and/or fraud protection.
 

Electric_Andy

Heavy Metal Fan
Location
Plymouth
As said above, they have the right to only refund to the method of payment it was taken on. I read it in the small print of a receipt onceSome places may be happy to do either but they don't have to. You can keep the refunded balance on your CC so you'll be in massive credit, then just use it to spend in future. Or check what the rates are for transferring that money to your current account, there is usually a fee but don't know how much.
 
OP
Dave7

Dave7

Legendary Member
Location
Cheshire
Thanks all.
I googled using a different question and as has been said it is mainly to prevent money laundering.
Apparently the store has flexibility eg if the C Card no longer exists.
When it happens I will contact the CC company and sort it out.
Thanks.
 

neil_merseyside

Über Member
Location
Wirral
Not if they are putting it into your bank & this is not a cash withdrawal it's a refund, completely different scenario
You must have missed this bit from the OP

"Now I don't want £2K being refunded to the credit card as it would just be stuck there**.
Some places seem to insist that refunds must go back to the CC it was paid by.
I got a refund for some faulty shorts from my LBS recently and they were happy to put it on any card I chose.
**thinking about it there must be a way of drawing cash from the CC but I have never done so. "
 

alicat

Legendary Member
Location
Staffs
Don't withdraw cash on a credit card, ever, most CC charge interest from withdrawal, and most also charge a withdrawal fee as well.
You just go to a cash machine and draw it out. If, as here, there is a balance in the customer's favour there are no charges or interest due.
 

Moodyman

Guru
Most banks treat the transfer of credit from a credit card to a current account as a 'cash advance'. This usually incurs a fee of c. 3%. So, £2k will cost the OP around £60.

However, in the current exceptional circumstances they may waive this, if you ask nicely and get an understanding employee.

Why do they refund back to the same card?

Somebody mentioned money laundering. That is true to some extent. More importantly, in the case of £2k, the holiday company will only get c. £1950. The remaining £50 will be shared by the bank and VISA/MasterCard.

Be refunding you £2k, the retailer only pays you back £1950, the other £50 being refunded by the bank and VISA/MasterCard.

If the holiday company refunds to another card, it's treated as a one-way transaction (not refund) so, they pay the full £2k.
 

Phaeton

Guru
Location
Oop North (ish)
Please explain how it's wrong.
Because this is not a cash advance & will never be treated as such, it is a refund of a positive balance, I have done this on several occasions, I have transferred the balance from the CC to another CC, however there has still been a DD active, the CC company have then taken the DD making the account positive, you just need to phone them you or use their secure messaging service & they will refund it back to you without charge.
 
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