Merchant sends credit to discharged CC - how to handle ?

[idainc]

I canceled two frequent flier tickets and the airline credited the original form of payment regardless of what I told them when I canceled it. I had to pay a reinstatement fee and did so with a debit card but the dolts they are credited the taxes back to a discharged card. Not pocket change either and they're telling me to go fix their problem myself.

I have no background in CC's. I would have thought the credit would have bounced back to them as the account number is invlaid ?

[idainc]

Bump. No one ?

[tcreegan]

Hi idainc,

...kind of confused here, sorry...

I canceled two frequent flier tickets and the airline credited the original form of payment regardless of what I told them when I canceled it.

What was the original form of payment? The discharged cc?

I had to pay a reinstatement fee and did so with a debit card

what the heck...do they deliberately complicate frequent flyer programs....
Not sure what happened here, they gave you back the miles? Refund the ticket price?

but the dolts they are credited the taxes back to a discharged card.

Can't credit a closed account, but you can credit a discharged card if it is not closed. ...BK discharge, no way, card gotta be closed

Not pocket change either and they're telling me to go fix their problem myself.

Gotta bump it up to a higher level, if they claim to have credited a closed card with your money they have committed fraud. Get as high as you can in the corporate structure and raise a stink.

Good luck with this,

Tom in Colo

[mysticspirit25]

Tom, I disagree with your post, not only can you credit a closed card, but Visa/MC regulations require a merchant to credit the original form of payment, doesn't matter if the card is stolen, closed, lost, whatever, does not matter. I know this because I am a small business owner and actually read my processing agreement with Visa/MC and it is standard across the industry, actually when you log into your credit card processing platform to see activity, the first thing that pops up is a "non verified returns" screen to show if any employees credited a card that was never charged. (I also have had credits gone to stolen and closed cards, and they get processed just fine and if the card is closed, the cc company sends a check)

While some companies may stray from this and credit another form of payment, it is against regulations and they risk the loss of their credit card processing.

Now, for the OP, there is hope. More than likely, the credit posted to the credit card. Since the card was discharged, they probably need to write the BK department and kindly ask for a check to be cut for that amount, and if the case is still open (i.e discharged but not closed) then they can file an motion with the court requesting the court order the cc company to give the money to the OP, they will do it because it will be cheaper for them to pay the credit to the OP than to fight an AP). Yes, it is a process, but how bad do you want the money?

[idainc]

Tom, I disagree with your post, not only can you credit a closed card, but Visa/MC regulations require a merchant to credit the original form of payment, doesn't matter if the card is stolen, closed, lost, whatever, does not matter. I know this because I am a small business owner and actually read my processing agreement with Visa/MC and it is standard across the industry, actually when you log into your credit card processing platform to see activity, the first thing that pops up is a "non verified returns" screen to show if any employees credited a card that was never charged. (I also have had credits gone to stolen and closed cards, and they get processed just fine and if the card is closed, the cc company sends a check)

While some companies may stray from this and credit another form of payment, it is against regulations and they risk the loss of their credit card processing.

Now, for the OP, there is hope. More than likely, the credit posted to the credit card. Since the card was discharged, they probably need to write the BK department and kindly ask for a check to be cut for that amount, and if the case is still open (i.e discharged but not closed) then they can file an motion with the court requesting the court order the cc company to give the money to the OP, they will do it because it will be cheaper for them to pay the credit to the OP than to fight an AP). Yes, it is a process, but how bad do you want the money?

Thanks for your insight. I had the temerity to call the CC and there never was an attempt to credit the card - their system tracks that aspect too. They advised that they've set their system to reject credits posted to discharged cards as its too libelous as you note to accept them. Therefore I did a chargeback to the debit card. While the airline thinks they did and I know they didnt I just got PO'd at them for their rotten attitude. It was sort of like I was trying to run a scam versus just get the taxes they have to refund.

[tcreegan]

Thanks for the update mystic, I am getting old, been out of the business world too long.....

...but the more I hear about, the happier I am to be out of the rat race!