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#2244582 - 10/26/20 03:29 PM Merchant Credit Greater than Disputed Amount
Soccer Offline
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I am working on a Reg E compliance review and came across a dispute where the merchant credit is larger than the amount of the dispute filed. What if any is the Bank's obligation? We credited the card holder the full amount of the credit and closed the case. Should we have return the 481.00 overage?
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eBanking / Technology
#2244590 - 10/26/20 04:02 PM Re: Merchant Credit Greater than Disputed Amount Soccer
rlcarey Online
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rlcarey
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Galveston, TX
You mean the merchant returned $481 more than the original transaction? I think that then becomes something between those two parties.
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#2244598 - 10/26/20 04:42 PM Re: Merchant Credit Greater than Disputed Amount Soccer
Soccer Offline
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Yes,

Thanks Randy
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#2244625 - 10/26/20 07:28 PM Re: Merchant Credit Greater than Disputed Amount Soccer
BrianC Offline
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Joined: Nov 2004
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Illinois
If the merchant realizes that they were on the losing end of a chargeback and also issued a refund to the customer, they can represent the chargeback, but only if they are within the VISA/MC timeframes to do so.

VISA/MC permit the merchant to send a "good faith collection letter" to an issuer requesting a refund of the overpayment. To Randy's point, that doesn't mean that you have to honor it and I wouldn't do so without the customer's consent to debit their account.
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#2244678 - 10/27/20 04:11 PM Re: Merchant Credit Greater than Disputed Amount Soccer
Soccer Offline
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Thank you for the further clarification.
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