Today I spoke with a potential customer who was frustrated with his credit card processor because it was charging him twice in a refund situation. For example, he was charged 2% when the customer made the purchase and another 2% when the purchase was refunded.

Refunds happen, quality businesses know that having a good relationship with customers requires standing behind the product and taking it back for a refund or exchange if the customer decides the product is not needed or realizes that it doesn’s precisely work in his/her situation.

Interchange, fortunately, does not charge for refunded charges.  In fact, interchange actually provides a refund for such charges.  For example, here is an interchange plus bill for one of our customers.  The lines circled in red are the refunds.  You will notice the little – sign next to them, that means that the merchant is being credited that amount, rather than being charged.

Refunded Transactions Result in Refunded Credit Card Processing Fees

If your credit card processor is charging you for refunds, then you are getting a bad deal.  The processors participating in TransFS do not charge for refunded transactions.