Consumer Refunds...

[gogo419]

Hi all,

Not really sure where to post this. Mods please feel free to move elsewhere?

My question is about consumer refunds in Australia. I know all business's who have a returns/refund policy state that you will be refunded via the original payment means. (i.e. credit card refunded original purchase amount) I was wanting to know, is this a requirement by law? Or is it just a common sense choice for business's to make so that they can also refund the merchant fee so that it doesn't cost them anything?

Would appreciate input from anyone with legal knowledge on this area..

Thanks gogo

 

[opusman]

The latter - it's so they get the merchant fee refunded. And I guess to guard against fraud. But there's no legal requirement for it - if say you've closed the credit card you originally used, it doesn't let the merchant say "well sorry, no refund then".

 

[rainbowgirl]

I had to return faulty goods given to us by a friend as a birthday present. I had the original receipt which had been paid by credit card. The store realised they couldn't use the original credit card and gave me a store credit voucher. Luckily there was more stock of the product and I was able to get a replacement product and used the store credit voucher straight away. The product was actually on special so I was able to buy a few other things I needed using the extra amount on the store credit voucher.

I've also been in a situation where a theatre ticket had to be refunded. I had closed down the credit card I had previously used so the ticket office used another credit card I had to process the refund.

 

[opusman]

I had to return faulty goods given to us by a friend as a birthday present. I had the original receipt which had been paid by credit card. The store realised they couldn't use the original credit card and gave me a store credit voucher.

It's good that you were happy with this, but under consumer law they are obligated to provide a refund in actual money rather than store credit, if that's what you choose (assuming the goods are faulty that is).

 

[puppysparkes]

You can find all your rights and obligations here: http://www.accc.gov.au/consumers/consumer-rights-guarantees

 

[rainbowgirl]

I wasn't sure of the rules back then. I've since seen them on "The Checkout" and a couple of articles on the web. At the time the store credit was convenient but if it was a store that I wasn't going to be using again I would have tried to get other options.

 

[Andyc]

Rules like this are primarily to guard against fraud.

My understanding of the merchant fees paid by my work is that the merchant fee still applies to a refund.
The most obvious situation it protects against is a stolen credit card being turned into cash by refunding items as cash (or onto a different card). But I'm sure there are other scenarios to protect against too.

 

[Buzzard]

Also stops people using refunds as a cash advance without fees.