Returning Deposits via Credit/Debit Card

GlenMark

SiteLink won't allow a refund to a credit card unless the card was on file and used before. We want to know how we can process refunds for security deposits to a new or updated card at move out?

jimbo1956

My understanding is that it is not possible. I was told you cannot issue a credit that exceeds an amount charged to that particular card

GlenMark

Our deposits are the same as a month's rent. So if a tenant pays for a month and then is out by the end, you would think that refunding the deposit back to the card would be easy. It hasn't worked for us. Seems like it's more about time than it is about exceeding amounts charged on a new card.

I've gone over this issue on the forum on multiple occasions, with the same results and the same explanations. It simply makes no sense to me.

I've heard there are storage facilities that are credit card only, so how are they able to refund deposits?

Since fraud seems to be a part of everyday life for a vast majority of people, obviously cards are going to get updated regularly. I've personally seen this happen with way more frequency since 2020--sometimes cards are updated multiple times within the span of a few months. 

So since Merchant Services does all this under the banner of "added security," I sincerely feel like it's a misguided philosophy. 

jimbo1956

I have a hard time understanding what risk they are saving us from. Now we have to mail a check out which contains all our banking information on it. With all the check washing scams and mail theft this causes me a lot of concern.

GlenMark

Agreed, but its not only that... speed of the mail, or potential loss (we've had that happen before). Its the rising cost of stamps. Its an envelope and a check. Our tenants have loved being able to have their deposits come right back to a card. Ease, convenience and speed of transfer. This is another case of it the system isn't broke, why fix it?

themage

As near as I can tell, this really isn't a Sitelink thing. It is a credit card industry thing. Generally speaking, refunds must be made to the card that made the payment. If the card has changed, but it is still for the same account, refunds will generally still work using the old card info. Apparently, this is to help fight money laundering.

Most businesses will issue store credit if they can't refund to the original payment method. Some offer store credit by default. Of course, that wouldn't make sense in our industry, so we are left with the options of cash or check.

Some retailers do specify that they can not make refunds except to the original payment method, and if that method is no longer valid, you wont be able to get a refund. I am not sure how they can manage that, though.

JulieAton

jimbo1956 said:

I have a hard time understanding what risk they are saving us from. Now we have to mail a check out which contains all our banking information on it. With all the check washing scams and mail theft this causes me a lot of concern.

In some cases I have resorted to going to bank to get a cashiers check to mail.  I do not feel comfortable mailing a check with all of my info on it.  They can use the info on any website that takes ACH payments.  There are some downfalls to a Cashiers Check also.  I have many that pay by ACH and don't think refunds are an option on ACH.