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Thread: Refund amounts

  1. #1
    Join Date
    Jun 2003
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    UK
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    Refund amounts

    Question I've been pondering. A hosting company sells a dedicated server for say $100 and a customer outside the US pays for it in and their bank / paypal converts the USD into their native currency. Now for whatever reason a refund of $100 is issued but due to changes in exchange rate the they only get back 95% of what they originally paid. They then complain that the refund isn't correct and want the hosting company to pay the extra 5%.

    Now my argument is that the hosting company shouldn't be liable as it outside their control and the company refunded the amount they have in their accounting system. Also the exchange rate could go the other way and the customer might end up with 105% of the amount they paid

    Rus
    Russ Foster - Industry Curmudgeon

  2. #2
    Join Date
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    I just click refund..
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  3. #3
    Join Date
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    The customer isn't liable for the host's cost of doing business. Bank fees are a cost of doing business. Are you also going to deduct the amount it cost you in time to issue the refund? You see where I'm going with this?

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  4. #4
    Join Date
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    It is always my policy to keep my customers happy...even if they are asking for a refund.
    Matt Armour
    OpenReaction

  5. #5
    Join Date
    Aug 2003
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    I don't think you legally have to do it, although it might be that you have to refund in the same currency which would result in that.

    I would probably tend to refund all by giving a little more if that happened, just to keep people happy.

  6. #6
    Unless you have it spelled out in your TOS, you owe them the full refund in their currency. The hosting company might not be liable, but this is about business ethics, and treating your customers right.

    If this is too much of a problem, don't accept customers out of the US
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  7. #7
    Join Date
    Mar 2003
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    Spokane, WA
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    I'm with the others, give them the full amount back in their currency. If anything you won't end up with someone going around the internet bad mouthing you over it.

  8. #8
    Join Date
    Jan 2005
    Location
    Richmond, VA
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    3,102
    Not so fast! If they pay you, you're only liable (by ethics and by law) to refund the amount that you actually received.
    Daniel B., CEO - Bezoka.com and Ungigs.com
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  9. #9
    It goes without saying that if you have to refund someone you have to pay the same amount but in this case the customer actually used the service so it will be better if you put rules that you will discount 2$ for example as a service usage.
    Or :
    It will be beter to put rules that if you will have to refund some one you will do it with the currency price in the date of refund request.
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  10. #10
    I think if they pay you in US you should refund them in US. which will mean they are getting 100% back.

    If they pay you in US, you convert it to AU then when they request a refund you do not send them payment in AU.

    It is a business expense which means the business wears it, not the customer (unless its stated in TOS)

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