What is a refund?

A refund is a compensation that has to be re-invoiced to the cardholder equal to the amount that he paid for a product or service at a POS terminal. The merchant is not obliged to return the money to the customer's card if there is no justification for filing a refund.

Many customers think that the commerce is obliged to make a refund of the money but there has to be a legal nature and clear reasons for that. Due to a large amount of buyers who try to ask for refunds in order to not to pay for the goods or services that the merchant has provided, all the refunds have to be justified and defective goods returned. 

When a merchant makes a return of payment to the cardholder he is obliged to do it by the same method of payment that was used by the client at the moment of making a purchase. What does this mean? It means that if a customer paid with a card and then filed for a refund, he can only receive his money back on the credit card. The merchant cannot make a payment via wire transfer or give a client the money in cash, since it is considered as a money laundering practice.