FTC Wants Quicker Credit Card Refunds - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » FTC Wants Quicker Credit Card Refunds

FTC Wants Quicker Credit Card Refunds

FTC Wants Quicker Credit Card Refunds
The content is accurate at the time of publication and is subject to change.

The Federal Trade Commission has issued a proposal that consumers who purchase goods and services via the internet receive timelier refunds.

“It makes sure that they’re going to get prompt service — as prompt as the technology allows today,” said FTC spokesman Frank Dorman.

The proposed regulations would modernize and update rules that have been in place since 1975 which were put into place to help ensure that consumers promptly received the merchandise they ordered or were refunded their money.

Prior to the new FTC proposal, retailers were obliged to refund money onto a customer’s credit card within one billing cycle or, roughly, one month. The new regulations would mandate that retailers issue refunds within seven days. The FTC went on to clarify the regulations by expressly making them pertain to purchases made over the Internet as well, and extend protection to customers paying by means of gift cards or debit cards which was previously absent.

The new refund rule would apply to situations wherein the customer requests a refund before the merchandise has been shipped out as well as to shipments that have been delayed.

Associations that act on the behalf of retailers are supportive, in large part, of the proposed changes. The National Retail Federation and the Direct Marketing Association stated, in comments submitted to the FTC, that their members already make an effort to issue refunds in a prompt manner and that everyone stands to benefit – retailers and consumers alike – by the standardization of rules applied to orders made through the mail, over the phone or online via the Internet.

“These rules make good business sense and are well-integrated into the business practices of our members,” read the comments made by the Direct Marketing Association to the FTC.

The precise amendments contained within the FTC proposal are as follows, according to their website ftc.gov:

  • Clarify that the Rule covers all orders placed over the Internet;
  • Revise the Rule to allow sellers to provide refunds and refund notices to buyers by any means at least as fast and reliable as first-class mail;
  • Clarify sellers’ obligations when buyers use payment methods not spelled out in the Rule, such as debit cards or prepaid gift cards;
  • Require that refunds be made within seven working days for purchases that were made using third-party credit, such as Visa or MasterCard cards. For credit sales where the seller is the creditor (such as merchants using their own store charge cards) the refund deadline would remain one billing cycle.
Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New CENTURION Lounges in London and Charlotte

Posted: December 7, 2018

Travelers who pass through Heathrow airport when heading to London and Charlotte Douglas International Airport in North Carolina may well be happy to learn that American Express is opening new Centurion Lounges in both these airports. ... Continue reading
Mastercard Sets up Shop

Posted: December 6, 2018

MasterCard is rolling out their own online store, offering visitors a 3D platform, where they can shop just like they would in a brick and mortar store, using virtual technology. This way they can get the feel of real-time shopping while ... Continue reading
Data Breach at Marriott Affects 500 Million Starwood Guests

Posted: December 5, 2018

If you have stayed at a Starwood hotel you might want to keep an eye on your credit report because Marriot has announced that the Starwood guest reservation system was breached. Reportedly, this hack may have compromised the personal ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!