In all my years of addressing Regulation E error claims, I haven't run across this situation.
A bank takes a POS dispute for a merchant transaction that took place in Canada. The merchant returns the funds, but the exchange rate has changed since the date of the transaction, so the amount refunded is $3.00 more than cardholder was originally charged. What should we do with the extra $3.00?
Would your answer change if the exchange rate went the other way, and the refund was $3.00 LESS than the amount of the original transaction?
Would your answer depend in any way upon the reason for the claim (for example, a claim that the transaction wasn't authorized vs. a claim that the merchant had agreed on a refund and had not yet sent the funds)?
Does Visa or MasterCard offer guidance on handling such interesting problems?
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8