Playing the Float?

[Dave Fritz]

On June 6th I returned an item to Menards to replace with another. The first was the wrong size and the package had never been opened. I got my refund done and purchased the correct one. The new charge showed up immediately on my credit card, the refund hasn't been posted now three days later. The cynic in me thinks maybe this may be going on. https://www.investopedia.com/terms/f/float.asp

[Roger Feeley]

I wouldn’t be surprised. Back when I was a working stiff I traveled for the company. They changed the bank that issued the travel reimbursements to some little bank in some dinky town. I would deposit the check immediately but the funds weren’t available right away. That little bank wasn’t on the federal network so clearing the check took a couple of weeks.

[Keegan Shields]

Dave,

Whatever happens, you can be sure two groups of people will make money - bankers and lawyers.

[Jim Becker]

It's kinda normal for refunds back to a CC to take a day or three to post to the account vs new charges. But even those new charges that appear "immediately" do so as "pending" in most cases and then become real charges in that same day or three.

[Ronald Blue]

Agree totally with what Jim said. The charges show pending on my account often and usually finalize the next day. Refunds/credits are at least a day and usually 2-3. Even in the electronic age things aren't always instant. It would probably be mind boggling to know how many billions and billions of dollars are in limbo at any one time.

[Jeff Roltgen]

+2
Surprised how many times online purchases don't actually post to my CC until very close to delivery day, or on it, as though coordinated deliberately. Main thing I monitor is that the balance be paid in full by due date. With inflation as it is, don't want any interest accruing to make things even more expensive.
This is a very bad time to be paying cash to use money.

jeff

[Jim Koepke]

The method of receiving payment is likely different than the method of refunding payment.

To process your return was your card entered in the same manner as when paying?

Even if it was, there may be other internal steps for the refund to process.

Hopefully you received a paper receipt for the return and can challenge your case if it doesn't post in the next few days.

jtk

[Patty Hann]

Some online vendors don't charge your CC until they actually ship the item; or if it's drop-shipped the charge isn't posted until that 2nd party ships it out.

And then there are those companies that, as soon as you press "Submit payment" --*blink-blink*-- your CC card is charged.

What is really annoying about the "immediately charged" places is that sometimes the ordered item is out of stock.
For my "metal art" I use a lots jewelry components/findings...dozens of one particular item.
So I order 2 dozen of A, and 3 dozen of B, and am able to put those quantities in my basket (i.e. the info on the item page doesn't indicate the actual quantity a in stock).
Sometimes during checkout it is flagged ("Number of A in your basket exceed stock availability") and that is OK; I alter it to pass the flag test.

But too often I get an email:
Vendor: You ordered two dozen of A and we only have qty 3 in stock. Is there something else you want add to the order? (A fair question., I'm thinking)
Me: *sigh* No, and why was I able to order 2 dozen if 2 dozen wasn't available? So just refund my CC for the difference.
Vendor (and not all do this): It costs us to refund a CC for that small amount. Will you take a store credit?
Me: (thinking...your problem.. and you are not going to make it my problem.) No thanks....just refund the CC for the difference.
Me to myself: And this never would have been a problem if your website did not allow customers to buy something is a specific amount that you don't have stocked/available to ship in said specified amount.

[Jim Koepke]

Me to myself: And this never would have been a problem if your website did not allow customers to buy something is a specific amount that you don't have stocked/available to ship in said specified amount.

Some businesses run efficiently and use excellent software that can track inventory. Other businesses take a less efficient route.

jtk

[Bruce Wrenn]

My pet peeve is paying bill at Lowes. Give them a check, and about a week later it finally clears my bank. Seems they hold check for several days in case customer returns items, which they often do. Think generators, lawn mowers, flowers for special events, etc. They have moved, but the grass needs cutting, so the buy a mower from Lowes, cut the grass and return mower for a FULL REFUND! Same with generators just before a hurricane, or ice storm. Buy it, if they don't use it, return it for full refund. Borgs should charge at least a 10% restocking charge on storm related items. If you want the comfort of knowing you have a generator, why not pay for that comfort?

[Keegan Shields]

In all of these cases, the payment processor or credit card company can spend some time holding the money and make money on the interest.

[Jim Koepke]

They have moved, but the grass needs cutting, so the buy a mower from Lowes, cut the grass and return mower for a FULL REFUND!

They should keep a national list of people who do this sort of thing and have their return privileges for anything denied.

Costco used to have a great return policy, up to one year, on many things until too many people messed it up for the rest of us. People would buy a new TV just before Super Bowl and then return it just before the next Super Bowl for an upgrade.

There should be a 10% return (rental) fee on some items.

jtk

[Brian Elfert]

My pet peeve is paying bill at Lowes. Give them a check, and about a week later it finally clears my bank. Seems they hold check for several days in case customer returns items, which they often do. Think generators, lawn mowers, flowers for special events, etc. They have moved, but the grass needs cutting, so the buy a mower from Lowes, cut the grass and return mower for a FULL REFUND! Same with generators just before a hurricane, or ice storm. Buy it, if they don't use it, return it for full refund. Borgs should charge at least a 10% restocking charge on storm related items. If you want the comfort of knowing you have a generator, why not pay for that comfort?

I have seen where some of the big box stores (not sure about Lowes) will put up big signs stating that generators cannot returned when there is a tropical storm or hurricane predicted. I wouldn't be surprised if some people put up full sheets of plywood and then try to return them after the storm full of holes where they screwed them to the house.

[Brian Elfert]

They should keep a national list of people who do this sort of thing and have their return privileges for anything denied.

Costco used to have a great return policy, up to one year, on many things until too many people messed it up for the rest of us. People would buy a new TV just before Super Bowl and then return it just before the next Super Bowl for an upgrade.

Costco still has their essentially unlimited returns policy for most items in the store. Certain items that have a limited service life like tires and auto batteries have their own warranties. (They are not going to refund your used up tires.) Electronics, including TVs, and major appliances have a 90 day return period.