GST/VAT refunds reduce AMEX Points....why!

[liuyz]

@liuyz is referring to the way the payment is processed, not semantics surrounding the name of the government scheme. When money goes from a merchant to a cardholder's card it can be in one of two ways, a full or partial "refund" of a prior charge, or as a "reverse purchase" which gives rise to a totally independent transaction. Only the original merchant can initiate the first type of transaction.

That's right.
Credit card points should be deductible with Refund only if they were earned with the card on purchase. When the credit/fund goes into the credit account, and it is not against a previous spending, this should be deemed as a repayment. Thus, no points deduction. This should not be difficult to implement.

 

[ChrisFlyer]

In Australia, I have TRS refunds paid straight into my Australian bank account. Overseas, I have tax refunds paid onto my Citibank Debit Mastercard (linked to the Plus Transaction Account): that way, I don't lose points, and when overseas, don't pay any fees if the refund is in a foreign currency.

 

[MathNerd]

when overseas, don't pay any fees if the refund is in a foreign currency.

Are you saying that refunds in a foreign currency (onto a card with no fee free foreign transactions) attract an international transaction fee too?

 

[woodborer]

That's right.
Credit card points should be deductible with Refund only if they were earned with the card on purchase. When the credit/fund goes into the credit account, and it is not against a previous spending, this should be deemed as a repayment. Thus, no points deduction. This should not be difficult to implement.

Or send the refund to a transaction account. This should not be difficult to implement.

 

[ChrisFlyer]

Are you saying that refunds in a foreign currency (onto a card with no fee free foreign transactions) attract an international transaction fee too?

It would depend on the card issuer as to whether a fee is charged on a forex refund, and/or whether there's a rebate of any fees initially charged when an international refund occurs.

 

[andye]

That's right.
Credit card points should be deductible with Refund only if they were earned with the card on purchase. When the credit/fund goes into the credit account, and it is not against a previous spending, this should be deemed as a repayment. Thus, no points deduction. This should not be difficult to implement.

The potential to rort this would be so big that I think they would end up forcing the vendors to only ever refund to the exact credit card number

 

[liuyz]

The potential to rort this would be so big that I think they would end up forcing the vendors to only ever refund to the exact credit card number

I thought this has already been enforced due to anti-money laundry.

But you are right, sometimes you still can refund to a separate card.

 

[Mr_Orange]

I thought this has already been enforced due to anti-money laundry.

But you are right, sometimes you still can refund to a separate card.

I have frquently refunded to a different card. For example, pay with Amex, refund to Visa/MC. Always the same payment method though, i.e. credit.

Merchants that insist on the exact same card number are just being awkward and don't understand the anti-money laundering regulations. They are there to prevent the 'production of clean cash' hence why a credit purchase should not be refunded to cash.

Years ago, I had to write a Stat Dec for QF to say that the credit card I had originally purchased something on was closed and the details of the new card they should process the refund to because they were insisting on the exact same card number. This example of where a card has been cancelled proves why the exact same card number is not necessary but just the same method of payment.

 

[theblank]

Are you saying that refunds in a foreign currency (onto a card with no fee free foreign transactions) attract an international transaction fee too?

it should attract the international transaction fee - in reverse, so its a refund.

 

[SOPOOR]

I have frquently refunded to a different card. For example, pay with Amex, refund to Visa/MC. Always the same payment method though, i.e. credit.

Merchants that insist on the exact same card number are just being awkward and don't understand the anti-money laundering regulations. They are there to prevent the 'production of clean cash' hence why a credit purchase should not be refunded to cash.

Years ago, I had to write a Stat Dec for QF to say that the credit card I had originally purchased something on was closed and the details of the new card they should process the refund to because they were insisting on the exact same card number. This example of where a card has been cancelled proves why the exact same card number is not necessary but just the same method of payment.

anti laundering or not , law or not, refunds should go back on the same card

it does seem petty but if it doesnt so many loopholes/rorts could be taken advantage of

for my refunds I always do try and use a different card for larger amounts, but if they ask me for the original card, i happily oblige