Returned Merchandise, Adjustments, Credits and Other Specific Terms of a Transaction

The following requirements concern returned merchandise, adjustments, credits and other specific terms of a transaction.

• Merchant disclosure of specific transaction terms. The merchant may impose specific terms governing a transaction. In the event of a dispute, such specific terms will be given effect, provided that such specific terms were disclosed to and accepted by the cardholder before completion of the transaction. The merchant may impose specific transaction terms by, for example, printing the specific terms on the invoice or sales receipt in close proximity to the cardholder signature line before presenting the invoice or sales receipt to the cardholder for signature. Specific transaction terms also may be disclosed by other means, such as by signage or literature, provided the disclosure is sufficiently prominent and clear so that a reasonable person would be aware of and understand the disclosure before the transaction is completed.Specific transaction terms may include, for example, such words as "Exchange Only," "In-Store Credit Only" or "Original Packaging Required for Returns." Specific terms may address such matters as late delivery, delivery charges, or insurance charges.
• Returned merchandise and canceled services. A merchant is not required to accept returned merchandise or the cancellation of services unless a right of return or cancellation was a condition of the transaction. If the merchant agrees to accept merchandise for return or to cancel services, the merchant must credit the same account used to purchase the merchandise or service.If the merchandise or service is purchased with a card, upon a partial or entire return of merchandise or cancellation of service, or if the merchant agrees to a price adjustment, the merchant may not provide a full or partial refund or adjustment by cash or check or by any means other than by a credit to the card account used to purchase the merchandise or service. The cardholder must be provided a copy of the credit receipt. A cash or check refund is permitted for involuntary refunds by airlines or other carriers or merchants only when required by law.
  
  • Credit receipt requirements. The credit receipt must contain the following information:
    
    • The date.
    • A description of the returned merchandise, canceled services or adjustment made.
    • The amount of the credit.
    • The merchant's signature.