Finance

Understand how Refunds work and be Stress-free

As the competition grows in today’s market, the person who can not work at a fast pace is left behind in the race by his competitors. In order to be as fast paced as the technology is getting around us, the merchants have to use fast payment methods as well. These payment methods include credit cards.

Credit cards can make a payment process really fast and efficient. But sometimes, because of human error, there can be some transactions that go wrong. The transaction can be sent to a different person by mistake, or there can be a mistake made while entering the amount that needs to be sent.

In such cases, a merchant service refund is applied for. Now whether a merchant receives the refund or he/she has to pay a fine, that is a different matter altogether.

How can one get a refund?

  • Customers are applying for a refund with merchants almost all the times. They do it on the ground that a faulty product is delivered to them or sometimes a product is not even delivered.
  • Most of the merchants have a refund policy which they follow in times of a refund claim. The most common way to settle a claim is to send the amount from the merchant’s account to the account of the customer.
  • A merchant might also have to pay back in cases where a customer has paid for the product, but the product never reaches the customer. In these cases, a customer can simply claim for the refund.
  • Sometimes, even when the merchant service refunds the amount immediately it might not reflect in the customer’s account at the same time. It can take up to 3-4 days for this refunded amount to reflect in the account.

A merchant while using a credit card can face some issues with the amount not reaching the desired person, but the money is already deducted from the account. In such cases, the person can go for a chargeback.

In a chargeback the person complaints to the credit card company directly and they either refund the entire amount or part of the amount. Going for a chargeback rather than the refund can take more time than usual.