Merchant Operating Instructions: Authorisation and Referrals

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Merchant Operating Instructions: Refunds

When you make a refund on a card transaction, the amount of the refund is returned to the customer’s card account and a corresponding debit will be made to your nominated bank account. You must always make a refund back to the card used for the original purchase.

• Before making a refund
• Making a refund using your terminal
• Making a refund using paper vouchers and the manual imprinter

• Before making a refund 
• Never make a refund unless there was an original purchase on the card. If you do, we may withdraw your card processing facility.
  
  • Check that your customer has given you the card used for the original transaction – the last four digits should match those on the card receipt. If they don’t, ask for the original card.
  • Never give a cash or cheque refund for a card transaction – fraudsters often try to obtain cash this way. Find out about Reducing Fraud.
  • Never refund more than the original transaction amount.
  • If the customer has received a replacement card, the card number may have changed. In this case, take reasonable steps to make sure you refund to the original account. For example, check that the start date of the new card is after the purchase date, and ask them for proof of identity.
  • If the card has expired, you should still make the refund back to it, letting your customer know that they need to contact their card issuer to arrange for the funds to be received.
    Please note: you could be at risk of a chargeback if a refund is not made to the original card used for the purchase.

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• Making a refund using your terminal 
• The way you do this depends on which terminal you have – please refer to your Terminal User Guide. If you need to use a supervisor card, please make sure that this is kept in a controlled environment and stored securely at close of business each day.
   
  Once you have processed the refund, an authorised person needs to sign the receipt. Your signature confirms you have given permission for the funds to be transferred from your bank account back onto your customer’s card.

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• Making a refund using paper vouchers and the manual imprinter 
• 1. Use a red Streamline refund voucher, marked REFUND.
  2. Put the customer’s card in the imprinter, with the refund voucher on top, and print as usual.
  3. Give the card back.
  4. Write on the voucher what the refund was for.
  5. Sign the voucher yourself.
  6. For the refund to reach the customer’s account, you will need to bank the refund voucher within five bank working days. (Refunds to Solo and UK-issued Maestro cards need to be banked within three bank working days).  Find out more about If Your Terminal Fails.
  
  Terminal receipts, paper vouchers and other transaction records are high-security items and access to them should be restricted.  Keep your copies of all transaction details in a secure fireproof place for at least 18 months in case there is a query later.  If you are not able to produce records when asked to, there may be a chargeback.  Do not alter transaction records in any way.  If there is a dispute, the cardholder’s copy will normally be taken as correct.  After 18 months, make sure that you dispose of all transaction records securely, in line with your Contract.

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American Express, Diners Club and JCB

Please use the separate instructions provided by these card companies.