A Credit Voucher (Refund Document) is a document issued by the merchant for the refund/cancellation of a good or service that a cardholder purchased from the merchant using a credit card, or for correcting an overcharge made by mistake.
In the case of a refund of a good or service purchased using a card, it refers to the document produced in 2 copies by the POS device, using the refund function on the terminal, by the merchant using the POS.
The amount stated on the document is credited to the cardholder's account. The 1st copy of the form belongs to the bank, the 2nd copy to the merchant, and the 3rd copy to the cardholder.
What happens if a merchant generates an excessive number of credit vouchers?
If a merchant regularly submits a number of credit vouchers (refund documents) that indicates cash usage over a certain period, this is a valid reason for terminating the merchant agreement.
Points to watch out for with credit vouchers
In a refund transaction, the amount must not exceed the original sale amount. Otherwise, an excessive refund is made to the cardholder and the merchant incurs a loss.
A refund is generally made to the card used in the original transaction; refunding to a different card is risky. The time it takes for the refund to reflect on the account varies by bank, and this time frame should be clearly communicated to the customer.
Merchants should keep a copy of the refund documents.
