I am wondering if the Money laundering Act makes it illegal to get cash refund after a credit card purchase.
2007-03-05 23:11:49 · 8 answers · asked by Ianptn 1 in Business & Finance ➔ Credit
Most stores will only refund in the medium that you used to pay for the goods. It's not really viable for money laundering - it's an awful lot of effort....
2007-03-05 23:15:09 · answer #1 · answered by mark 7 · 0⤊ 0⤋
Hi. The simple answer is that yes, it is legal to have money refunded to you in cash when you initially paid via your credit card, however there are a number of other issues to address.
Firstly, the money laundering legislation and regulations (Proceeds of Crime Act 2002, Money Laundering Regulations 2003, FSA regulation with guidance from the JMLSG etc) aren't relevant to this type of financial activity, because unless you are doing this to conceal the proceeds of crime it is not money laundering.
There may be an issue if the card is stolen, but if the card is yours and you conducted a transaction in good faith, there's no problem.
You should bear in mind that if funds are not refunded to your card, you will pay interest on the value of the funds (unless you pay off the amount in full or have a 0% offer on your card), therefore it may be worth accepting a cash refund and then immediately using that cash as a payment toward your credit card bill.
2007-03-06 09:37:59 · answer #2 · answered by Anonymous · 1⤊ 0⤋
I don't know about the Act but just imagine what a mess you would be in if you gave a refund in cash for a transaction when a stolen card or a cloned card was used.
2007-03-06 07:15:41 · answer #3 · answered by MANCHESTER UK 5 · 1⤊ 0⤋
The agreement with the banks and credit cards are why they issue credit on the cards. Merchants pay a commission on each credit purchase. They get back their commission when they get a refund credit from the credit card issuing bank.
2007-03-06 08:31:43 · answer #4 · answered by Rico E Suave 4 · 2⤊ 0⤋
Hi!
I don't think it's possible..simple as that. Hence..if it is legal or not matters not! You are not going to be able to get cash refunds on credit card purchases..they're not going to do it.
2007-03-06 08:06:57 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Yes it is illegal, and most big companies eg comet, supermarkets, wouldnt be able to give you a cash refund on their systems.
2007-03-06 07:16:47 · answer #6 · answered by natasha * 4 · 0⤊ 0⤋
all the companies I know only refund you the way you paid,i.e. back onto your card, or else a credit note.
2007-03-06 08:53:49 · answer #7 · answered by rosey 2 · 0⤊ 0⤋
not sure but i know most stores will only put the money back on your credit card
2007-03-06 07:19:21 · answer #8 · answered by smiley 4 · 2⤊ 0⤋