Personal Finance

Is it possible to reverse a direct debit charge???

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  • May 9th, 2011 4:58 pm
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Member
Apr 25, 2010
208 posts
2 upvotes
West of Toronto

Is it possible to reverse a direct debit charge???

Long story but a few days ago I allowed a direct debit charge to take place that I should not have.

I know you can dispute credit card charges; but is it possible to reverse a direct debit charge? A merchant should not have received the funds and refuses to issue a refund. Can my bank help?

thanks
7 replies
Deal Addict
Mar 2, 2005
2033 posts
334 upvotes
Just to ensure, it was a direct debit like a monthly charge and not a POS transaction? I doubt you can dispute it if you have signed necessary paperwork. But better to call the bank and inquire. Don't forget that the funds are already transferred.
Newbie
Jun 5, 2010
67 posts
11 upvotes
It is possible if you have proof.

A few years ago I was double charged for a bus ticket at the Greyhound station (Station Centrale) in Montreal. I called the bank, and I went in with my receipts and documentation and proof (the error receipt and ticket). First transaction was cancelled that day by the system (for whatever reason), and the second one went through. Thankfully I was at a teller and I kept my receipts, etc.

Took a few weeks, but the money was back in my account. Where the money came from, I don't know (whether it was refunded from Greyhound or some other thing).
Member
Apr 25, 2010
208 posts
2 upvotes
West of Toronto
Deal Grabber wrote: Just to ensure, it was a direct debit like a monthly charge and not a POS transaction? I doubt you can dispute it if you have signed necessary paperwork. But better to call the bank and inquire. Don't forget that the funds are already transferred.


Yes it was a POS transaction.

I was informed at the time by the merchant that a refund was no problem if I changed my mind but now has renegged on that.

I feel very stupid about this but I was also lied to.

Damn.
Deal Addict
Mar 2, 2005
2033 posts
334 upvotes
redman2000 wrote: Yes it was a POS transaction.

I was informed at the time by the merchant that a refund was no problem if I changed my mind but now has renegged on that.

I feel very stupid about this but I was also lied to.

Damn.

I do not think you are being clear about the whole situation. You purchased something that you thought you could return, but now the seller isn't letting you return it? I think that needs to be sorted out with the merchant and not with the bank. You agreed to pay and acknowledged policies, if the merchant falls back on policies, you can't go to the bank to refund your money. If that were the case, everyone who was declined a return at big box would do the same.
Member
Apr 25, 2010
208 posts
2 upvotes
West of Toronto
Deal Grabber wrote: if the merchant falls back on policies, you can't go to the bank to refund your money.

Merchant failed his policy. And if this happens with a credit card you can indeed dispute it. I'm only asking can this be done with a debit card dealing with a dishonest merchant.
Deal Addict
Jun 9, 2003
4646 posts
746 upvotes
redman2000 wrote: Merchant failed his policy. And if this happens with a credit card you can indeed dispute it. I'm only asking can this be done with a debit card dealing with a dishonest merchant.

Does the merchant have a written policy or is this just a "he said, she said" thing?
Deal Addict
Oct 4, 2009
3590 posts
2953 upvotes
Montreal
No way the bank will get involved in a customer/merchant dispute over a refund. You'll need to work it out with the merchant.

If it was an incorrect debit as in they took out funds from your account without permission or for something you never authorized then sure but even in those cases it takes forever to get resolved even if the merchant agrees it was an error. Consumer protection in this area is sorely lacking, the government should enact some laws to force banks to better protect consumers. There have been instances in QC of utility companies withdrawing thousands of dollars from their customer's bank accounts using preauthorized debits for delinquent bills that were not even theirs(same/similar name, etc). It's the wild wild west when you sign a preauthorized debit form.

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