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?

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

Mitch

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.

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.

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

Thanks