Skip to content
BOL Conferences
Thread Options
#2279299 - 12/29/22 07:15 PM Merchant credit
Compliance Action Subscriber 1226 Offline
100 Club
Joined: Sep 2015
Posts: 198
Customer disputes a transaction, provisional credit is give to the customer, credit is received by the bank, merchant credits customer, the bank revokes the provisional credit, merchant does not represent so bank is holding the original disputed amount that does not belong to the bank or the customer - what does the bank do in this scenario

Return to Top
Deposits and Payments
#2279303 - 12/29/22 07:58 PM Re: Merchant credit Compliance Action Subscriber 1226
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,685
Illinois
Visa/Mastercard rules state that the bank is required to take steps to prevent "unjust enrichment." Since you cannot utilize the chargeback process to return the funds to the merchant, you are required under V/MC rules to make a good faith effort to contact the merchant to make arrangements to return the funds to them (e.g. mailing them a cashier's check.) If you are unable to contact the merchant, the funds would eventually be escheated in the merchant's name as unclaimed property.
_________________________
Sola Gratia, Sola Fides, Sola Scriptura, Solus Christus, Soli Deo Gloria!
www.tcaregs.com

Return to Top

Moderator:  John Burnett