Credit Card Fee - Refunds

[gizzard]

If I pay for something with a credit card and then obtain a refund, am I entitled to have any fee that I paid refunded too?

 

[Dr Ralph]

If I pay for something with a credit card and then obtain a refund, am I entitled to have any fee that I paid refunded too?

That might depend on exactly what 'fees' you are referring to.

If it was a surcharge for using a credit card then I would say yes.

 

[UP4014]

The merchant surcharge should be refunded as well.

Matt

 

[froggerADL]

I once cancelled a DJ Virgin International flight and as well as the cancellation charge they hit me with another credit card fee for processing the refund!

 

[UP4014]

I once cancelled a DJ International flight and as well as the cancellation charge they hit me with another credit card fee for processing the refund!

That doesn't very above board to me.

 

[froggerADL]

That doesn't very above board to me.

I complained and they said it was in the terms and conditions.

That was a few years ago, so hopefully they are more reasonable now.

 

[gizzard]

That might depend on exactly what 'fees' you are referring to.
If it was a surcharge for using a credit card then I would say yes.

Yes, the merchant surcharge fee applied for choosing to pay with a credit card.

Is is a legal requirement?

 

[DeKa]

Yes, the merchant surcharge fee applied for choosing to pay with a credit card.

Is is a legal requirement?

Not a legal requirement, but probably a part of the agreement the merchant has with their bank. As an example, the CBA Merchant Agreement says they must (section 2.3.2).
Of course, it may vary by bank.

 

[liamsal]

I returned something to the Shaver Shop (change of mind, not faulty) a few months back and was not refunded the CC fee for using my Amex. There is a small printed sign near the EFTPOS machine that says CC fees are not refunded when returning an item. It ended up being a pretty noticeable difference in the refund vs purchase price so was annoyed but didn't follow it up.

 

[UP4014]

I returned something to the Shaver Shop (change of mind, not faulty) a few months back and was not refunded the CC fee for using my Amex. There is a small printed sign near the EFTPOS machine that says CC fees are not refunded when returning an item. It ended up being a pretty noticeable difference in the refund vs purchase price so was annoyed but didn't follow it up.

But if you get a refund does the card supplier refund the fee? I think they have when ever I received a refund on anything but it's been a while.

 

[JohnK]

I once cancelled a DJ Virgin International flight and as well as the cancellation charge they hit me with another credit card fee for processing the refund!

I vaguely recall similar experiences posted on AFF. Think that glitch has been fixed.

 

[VPS]

accidentally purchased insurance recently when booking a car hire with vroom vroom and rang and cancelled the insurance immediately and got a full refund LESS credit card fees - queried and he said they wouldn't refund fees

 

[liamsal]

But if you get a refund does the card supplier refund the fee? I think they have when ever I received a refund on anything but it's been a while.

It was an American Express and I definitely didn't get the fees refunded by them.

 

[Timtammi]

Generally speaking the merchant will get the merchant fees refunded when they refund the transaction. Depending on the terms and conditions of their merchant account they might get it all back or the bank might withhold a small amount as a processing fee.
Our company has 2 merchant accounts and Paypal for accepting payments from customers and we would always refund any CC surcharge charged when doing a refund. That said, we are pretty much moving away from charging a surcharge these days, we only do it for manual transactions not those transacted through our webstore and even then half the time we waive it.