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Originally Posted by thingstodo
Either the company I tried to purchase from or the bank is screwing with my money. I guess I'll call the bank and find out what is taking so long. The thing is, I've never had this problem with any other on-line refunds - they're always very prompt. And this company acts like it's normal business.
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It's the bank's way of ensuring they won't lose a dime. You're responsible for the charge until the merchant funds reverse to the bank's account and enough time passes for it to clear all settles. If anyone - customer, merchant, or transaction processor - defrauds them then it's in your lap with interest from day zero.
I've been involved in three merchant account negotiations and that's been part of every contract. You're right it isn't true in every case but I expect that's part of larger agreements (ours never moved > $250K/mo). It could also be for large accounts working directly with a bank, without middlemen who increase chance for error/fraud, or even situations where the merchant guarantees funds for the bank in the name of customer service.
The banks and merchant service companies have smaller merchants and consumers over a barrel. Don't like the policies? Don't use or accept cards. If you haven't noticed, banking has turned to usury or fee-rape over the last decade. Use a card attached to your assets or you're at their whim.