Card Transactions Issues: Delayed Refunds at a glance

We transact daily with our Credit and Debit Cards as we please, making it easier for us to purchase goods from merchants and sellers even those not within our locality, state, or continent. However, there are times when "What you Order versus What you Got" is just hitting you and the next action is to return the goods and get your money back.

This is where the frustration sets in as a customer, then you see that you are not getting your money back instantly as you should, and the whole process of getting your funds back is delayed.

A delayed refund from an online merchant to your card account can be frustrating, and there can be several reasons behind the delay. Here are some common causes:

?1. Merchant Processing Time: Some merchants have internal processing times for refunds. It may take a few business days for them to initiate the refund from their end. They might not issue the refund immediately but instead, process them in batches at specific intervals. This can cause a delay in seeing the refund on your card statement.

?2. Bank Processing Time: Once a merchant initiates a refund, it goes through the banking system, which can also take time. Banks may have their own processing times for refunds, and this can vary from one institution to another.

?3. Payment Method: The method you used for the original purchase can affect the refund timeline. Credit card refunds tend to be faster than debit card refunds, and the specific card issuer (e.g., Visa, Mastercard) can also have varying processing times. Sometimes the card you used initially might have been compromised and you need to add another card for it to be used as the payment method by the merchant, this can slow down the process as well.?

4. Merchant Policies: Some merchants have specific refund policies that dictate when and how refunds are issued. They may have certain conditions, such as waiting for returned merchandise to be received before processing a refund and waiting for the issuing bank to log a dispute with the generated ARN (Acquirer Reference Number) on the Card Service Provider platforms.

?5. Merchant Errors: Sometimes, the delay can be due to errors on the part of the merchant. They might have made a mistake when processing the refund or encountered technical issues.

?6. Bank Delays: Occasionally, banks can experience delays in processing refunds due to technical glitches, high transaction volumes, or other issues.

?7. Weekends and Holidays: Weekends and holidays can impact the refund process. Banks and merchants may not process refunds during these times, leading to delays.

?8. Chargeback Disputes: If you initiated a chargeback for the original purchase, it can complicate the refund process. Chargebacks involve a dispute resolution process, and it may take time to resolve.

9.?Technical Issues: Occasionally, technical glitches or errors in the payment processing system can result in delays in refund processing. This can include issues with payment gateways, software, or communication between systems.

To expedite the process and ensure that you receive your refund in a timely manner, consider the following steps:

?1. Contact the Merchant: Reach out to the merchant's customer support to inquire about the status of your refund. They may be able to provide information on when it was issued and when you can expect to see it in your account.

Always request for the Acquirer Reference Number to be provided to your bank or card Issuer. Mostly 8,11 and 23 digits vary based on the merchant platforms.

?2. Check Your Statements: Keep an eye on your card statements to see if the refund appears. Sometimes, it might not be immediately visible, but it could show up in the next billing cycle.

?3. Contact Your Bank: If the delay persists and the merchant is unresponsive, contact your card issuer or bank to inquire about the status of the refund. They may be able to provide more information or assist in resolving the issue.

?4. Be Patient: While delays are frustrating, it's important to be patient and give the process some time. Refunds can take several business days or even weeks to process fully.

5.?Dispute Resolution: If there's a dispute or unresolved issue causing the delay, work with both the merchant and your bank to resolve it. You need to ensure you have a reference number for the ticket created on your behalf by both the merchant and the Issuer.

If you believe there is a problem with the refund or it has been unreasonably delayed, you may want to consider escalating the issue by filing a complaint with the appropriate consumer protection agency or seeking legal advice if necessary.

(C) Joshua Oyelalu

(Technical Business & Application Support Guru -Consumer & Commercial)