Stephen Sprunk wrote:
On 27-Feb-12 11:38, Adam H. Kerman wrote:
Stephen Sprunk wrote:

(Debit card transactions are _not_ removed immediately in the event of a
dispute, which is a significant difference.)

The debit has already occurred, so procedures with credit cards are
irrelevant. A chargeback by the clearinghouse to the merchant's account
isn't possible. The amount must be refunded.

Wrong. The dispute and chargeback procedures involving the issuing
bank, the card network, the card processor and the merchant are all
identical regardless of what class of payment card is used.

You just made something up. I'm still calling it a refund, and not a
chargeback, to distinguish between the merchant receiving payment in
advance of when the cardholder pays his bill, and the merchant receiving
money from the cardholder's bank account. So the refund must come from
the merchant's bank account, not by applying to future receipts he anticipates
from credit transactions.

It's somewhat comparable to what happens when a check is processed for
the wrong amount.

The _only_ difference is that the charge is not reversed in the
customer's account until _after_ the dispute is resolved, and that is
because US consumer protection laws do not apply to debit accounts, only
credit accounts.

As I stated in the bit you snipped, there is some consumer protection for
debit card use, but it's not as good as what's available when using a
credit card, so you don't know what you are talking about.

You're still wrong about why the reversal doesn't occur immediately:
Again, it's because the merchant receive monies directly from the purchaser.
The merchant's bank account has some protection, too: Can't just be
debited by third parties.

In credit card transactions, the merchant has received payment on credit,
not directly from the purchaser. That's why it's different.