AIBU to think refunds should be processed as quickly as payments?

[Changingplace]

Why is it that companies can take your payment instantly, but when it comes to issuing a refund it takes days, weeks, when it’s possible to make an instant bank transfer?

I’ve been waiting for a refund since Monday, they said it’d be 2 days, no sign of it yet and I desperately need it today, it’s ridiculous.

I know what you mean.

In the case on online purchases, I don’t mind it so much. The reason online shops can afford to offer free returns to customers is because they make money from keeping hold of our money longer. I would rather they do that and I don’t have to pay for the return postage.

However if there is no physical return that has cost the company money, the return should be instant in my opinion. Also if the product is damaged that should be an instant refund too.

What is it you purchased?

I agree.

I think there are some purchases or expenditure which is regulated by government and so could be insisted upon very simply. Utilities, train companies, and local government, for example.

There should also be the option of refund to bank account instead of future discounts/vouchers for some things.

Its the bank that actually causes the delay. They put the money in a holding accout. I worked for a dealership where the salesman pushed the wrong button on the credit card machine and took too much money. We refunded money instantly but took 3 days to come through. The money had left our account but didnt hit his acvount for 3 days. We couldnt give him car but he couldnt pay us as he had no money in account. Bank said we just had to wait for it to through their systems

I had a nightmare trying to get money refunded after a company sent the wrong item, despite sending proof of posting, proof of tracking and proof of receipt at the warehouse. It wasn’t until I hunted down the number to speak to an actual person, that I got an agreement to refund. It took about six weeks in total. I won’t shop there again.

I do agree with you. You have to pay instantly but some refunds take up to 10 days. Mad

Tu, if you return in store instantaneous.

You dont always pay immediately, sometimes there’s a holding charge on your account but the money doesn’t leave for a few days.

And even when it does leave immediately, it doesn’t go straight into the bank account of the company you’re buying from. A lot of the time, the refund does leave their account almost immediately but you only get it back as fast as they got it from you.

You dont always pay immediately, sometimes there’s a holding charge on your account but the money doesn’t leave for a few days.

And even when it does leave immediately, it doesn’t go straight into the bank account of the company you’re buying from. A lot of the time, the refund does leave their account almost immediately but you only get it back as fast as they got it from you.

This

Does it work differently to a personal bank transfer then? I wonder why?

If I make a personal transfer 99% of the time it reaches the other person immediately, next day occasionally - why do banks treat these transactions differently, especially when business accounts are likely paying an additional fee for that account?

Why do banks treat personal transfers differently then?

Surely when businesses are paying a fee for their account they should get the same or better service than a personal account where I can make an immediate transfer.

Because they’re not paid via faster payments from one account to another, they’re card payments made through payment providers.

A faster payments transfer goes from one bank account to another. A card transfer goes from buyers account to the payment processor (eg Square) to the card network (visa/mastercard) and then to the merchants bank. All of those steps include checks, taking a cut of the transaction in fees etc which is why you have more protection with a card payment than a bank transfer. The payments are often done in one whole batch at the end of the day too instead of every single transaction as it’s more efficient.

Faster payments are done through a different system that actually doesn’t fully reconcile for a few days after the transaction and is relies on the Bank of England for net settlement - but basically there are so many checks and balances at individual accounts they can move the money straight away as they are certain the money is there to be moved and the behind the scenes admin can be sorted later.