Can closed merchant accounts still do refunds? - GoFuckYourself.com

rowan · 12-06-2006, 01:13 AM

Just popped into my head, with all the crap happening with paymonde...

If a merchant account is forcibly closed can the (former) merchant still initiate a refund of a CC transaction?

NETbilling · 12-06-2006, 01:43 AM

If the merchant account itself is closed, it can not process anything.

Mitch

spunkmaster · 12-06-2006, 02:22 AM

No, but the Bank has to so that's why they hold the funds for up to a year.

The normal contract states they can hold the funds for 180 - 240 days after the last credit or chargeback on the account so if there is a chargeback on day 179 they can hold the funds for another 180 days !

This is why it's stupid to tell customers to do a chargeback because each day there's a chargeback the clock restarts on the merchant getting the funds.

rowan · 12-06-2006, 05:26 PM

Hmm, interesting. If I'm understanding the situation correctly Paymonde have lost their processing, but they are still allowing webmasters to initiate a refund.

Teaching customers how to do a chargeback - even if it's against a shady processing company - is ulimately just shooting yourself in the foot. The customers aren't missing out on anything, unless the processing company goes barmy and prematurely ends subscriptions.

baddog · 12-06-2006, 05:29 PM

Quote:

Originally Posted by NetBilling

If the merchant account itself is closed, it can not process anything.

Mitch

Mitch, could you turn on your ICQ for a few . . . . quick question there for you.

Thanks

12-06-2006, 01:13 AM	#1
rowan Too lazy to set a custom title Join Date: Mar 2002 Location: Australia Posts: 17,393	Can closed merchant accounts still do refunds? Just popped into my head, with all the crap happening with paymonde... If a merchant account is forcibly closed can the (former) merchant still initiate a refund of a CC transaction?

12-06-2006, 01:43 AM	#2
NETbilling Confirmed User Industry Role: Join Date: Jan 2002 Location: Huntington Beach, CA Posts: 8,584	If the merchant account itself is closed, it can not process anything. Mitch __________________ Mitch Farber CEO - NETbilling, Inc. Email / Phone: 888-357-8166 / 661-252-2456 Transaction processing & 24/7 call center services with exceptional rates and flexibility, since 1998!

12-06-2006, 02:22 AM	#3
spunkmaster Confirmed User Join Date: Jan 2004 Posts: 2,052	No, but the Bank has to so that's why they hold the funds for up to a year. The normal contract states they can hold the funds for 180 - 240 days after the last credit or chargeback on the account so if there is a chargeback on day 179 they can hold the funds for another 180 days ! This is why it's stupid to tell customers to do a chargeback because each day there's a chargeback the clock restarts on the merchant getting the funds. __________________

12-06-2006, 05:26 PM	#4
rowan Too lazy to set a custom title Join Date: Mar 2002 Location: Australia Posts: 17,393	Hmm, interesting. If I'm understanding the situation correctly Paymonde have lost their processing, but they are still allowing webmasters to initiate a refund. Teaching customers how to do a chargeback - even if it's against a shady processing company - is ulimately just shooting yourself in the foot. The customers aren't missing out on anything, unless the processing company goes barmy and prematurely ends subscriptions.