MC/VISA Returns

A reminder about MC/Visa returns:

When a customer requests a refund and has paid by credit card, sometimes we want to keep a small amount of his money to cover our costs of the transaction. This is allowed by the rules of MC/Visa, in the form of a “restocking” fee. This is an amount to cover some of our expenses relating to the transaction. We aren’t charging them for using their credit card, we are charging them to restock the item they are returning. Think of the man hours, sales-wise, inventory-wise and accounting-wise, and you can easily see we lose money on refunds even though we get the item back