Card refunds

It’ll be largely dependent on internal systems of each bank too. Some will be more modern and have automations and tech built into their processes etc. which should make things faster.

Others won’t be as advanced and will ultimately need a human being to physically process a final payment / refund. Staff cost money, so they’ll build their capacity to meet their timescales.

A lot of the old school banks are riddled with old Legacy systems and replacing them takes time and investment.
 
Jonny Ingbar said:
Its a scam really, companies taking an eternity to issue refunds, during high time they're making additional profit from it.
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They don't hold the money if it's an authorisation. If it's a confirmed transaction, additional time is usually taken to ensure large scale revolving fraud can't just take place. There are also intermediaries in the chain - merchant services/acquirer (card terminals) & bank (who provide the card), issuing scheme (visa/mastercard/amex)

Businesses don't tend to have high interest savings accounts - be lucky if they're gettting 1-1.5%, volume of customers making refunds over 3-4 days, doubt even Amazon are raking it in over that.


To a consumer, it looks like you buy something and company gets the money right away, the reality is numbers get changed but payments go out in batches and various points in the chain with to their own rules and service levels, so depends where you fall in that chain. Things have been getting quicker last few years
 
TeessideCleveland said:
All banks will receive it next day, but only if the company send it
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That's not true.
We process the refund immediately.
It still takes a few days to be processed via the card handling company and then the bank or card issuer before the customer sees it.
Don't ask me why, but it's not because we hold onto it.
 
To be fair to Amazon they refunded me instantly before following an exchange via their online system.
 
ThatFragranceGuy said:
They don't hold the money if it's an authorisation. If it's a confirmed transaction, additional time is usually taken to ensure large scale revolving fraud can't just take place. There are also intermediaries in the chain - merchant services/acquirer (card terminals) & bank (who provide the card), issuing scheme (visa/mastercard/amex)

Businesses don't tend to have high interest savings accounts - be lucky if they're gettting 1-1.5%, volume of customers making refunds over 3-4 days, doubt even Amazon are raking it in over that.


To a consumer, it looks like you buy something and company gets the money right away, the reality is numbers get changed but payments go out in batches and various points in the chain with to their own rules and service levels, so depends where you fall in that chain. Things have been getting quicker last few years
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I'm talking about energy companies specifically, delaying the issue of account credits when customers move?
 
Jonny Ingbar said:
I'm talking about energy companies specifically, delaying the issue of account credits when customers move?
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Energy firms takes approx 6 weeks because it's audited by a third party to ensure the transfer is agreed on both sides - it's out of the control of the energy firm.

You can avoid that by getting a refund of a credit balance before you switch

Again, doubt they make a profit off holding those balances for 6 weeks even if they do hold it - they'll lose far more in bad debt and chasing customers for money owed - many owe money when leaving a supplier and if owed for less than28 days it just goes in final bill - again 6 weeks later as agreed from all sides
 
joeydiaz said:
To be fair to Amazon they refunded me instantly before following an exchange via their online system.
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If I've got an issue with any company I'd rather not be with Amazon. Free returns, very fast refund or even refund as gift card if you know it's something you need to rebuy, sometimes they even tell you to keep it and refund you. I probably do about 200 orders a year with them and their cs is great
 
ThatFragranceGuy said:
If I've got an issue with any company I'd rather not be with Amazon. Free returns, very fast refund or even refund as gift card if you know it's something you need to rebuy, sometimes they even tell you to keep it and refund you. I probably do about 200 orders a year with them and their cs is great
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My eldest sons tablet broke (smashed screen) after a year, the one we had was out of stock so they said order whatever new one you want and they would refund it once delivered. We ordered the latest pro version and they said to keep the old one so we got the screen repaired. They were bang on.
 
Amazon changed the game. They were the first company to properly focus on the lifetime value of a customer rather than look at each purchase in isolation.
 
Deliveroo were very good. I had an order for groceries delivered and the shop (Sainsburys) sent the wrong order. I got to keep the order (their customer service rep called me while I was with the driver) and they credited the value of my order so I could order it again.
 
Rofesleg said:
That's not true.
We process the refund immediately.
It still takes a few days to be processed via the card handling company and then the bank or card issuer before the customer sees it.
Don't ask me why, but it's not because we hold onto it.
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When you say 'we' - I'm sure your company sends it immediately, but some don't
I've had refunds the same/next day from plenty of companies - but some do take longer
 
TeessideCleveland said:
When you say 'we' - I'm sure your company sends it immediately, but some don't
I've had refunds the same/next day from plenty of companies - but some do take longer
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Read my post above about the parts of the chain and how it depends at what point the money is taken / was sent. It's not as simple as you sent a company money, they receive it instantly and send it back to you via bank transfer.

If you paid by bank transfer then maybe you would get it back immediately but most people pay by card which means visa/amex/MC then merchant services like barclaycard commercial, then the issuing bank of the card you paid with.

All of which will batch payments up.
 
Rofesleg said:
Amazon changed the game. They were the first company to properly focus on the lifetime value of a customer rather than look at each purchase in isolation.
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I'm sure I read that their game changing (and it is) is at the expense of their suppliers.
Pretty good business model tbf - Amazon get the kudos and the supplier pays
 
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