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Customer's Recourse with Merchant

Answered by: 
John Burnett

Question: 
If a customer pays with a debit card, what recourse do they have when the product they purchased is no good and the merchant will not give refunds? The receipt did not disclose "No Refunds, Exchanges Only". Does it make a difference if it was used as a credit card where they signed for the merchandise instead of using the PIN?
Answer: 

How the customer used the card would potentially make a big difference! If the card is used with its PIN, the transaction doesn't run through the MasterCard or Visa network, so the card association chargeback rules and procedures would not be available. That would leave Reg E, which provides no relief at all. Assuming that the customer used the card in "signature" mode or over the internet or telephone, the Visa or MasterCard chargeback rules, if applied by your bank, might provide your customer a refund.

First published on BankersOnline.com 1/07/08

First published on 01/07/2008

Filed under: 
Technology
Filed under technology as: 
Internet
IT

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