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#2240803 - 08/07/20 06:20 PM Merchant Dispute with Partial Refund from Merchant
Anonymous
Unregistered

We have a customer that has been advised by a merchant that they are crediting him for 70% of a purchase he ordered online but did not receive. The customer came in today to file a dispute for the remaining amount (he still hasn't received the 70% credit). Should we wait the five days (which is when the merchant told him he should be seeing his credit) and then file a dispute for the difference or should we file the dispute for the entire amount now? I know the merchant disputes don't fall under Reg E, but I know we have obligations on the VISA/MC side of things.

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#2240807 - 08/07/20 06:42 PM Re: Merchant Dispute with Partial Refund from Merchant Anonymous
burkemi Offline
Platinum Poster
Joined: Nov 2013
Posts: 549
If your customer has a receipt for the 70% refund, that portion actually does fall under Reg E. 1005.11(a)(ii) An incorrect electronic fund transfer TO or from the consumer's account.

You're correct about the remaining 30% not covered by Reg E, but under Visa/MC you may be required to assist. Depending on the amount, it may be simpler (and cheaper) to refund the remaining money.

If the merchant has issued a credit slip to be refunded within 5 business days, you don't truly have a dispute until that time has expired. Almost like a dispute that is issued on a preauthorization swipe - the transaction hasn't posted yet, so there is no dispute until it has. After 5 days, if the credit has not appeared, file your dispute for credit not processed, then file for the remaining 30% as merchandise not received.

If the credit does process, you can still file the dispute for the remaining 30%
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