Merchant Account Return

A return is the reversal of an approved transaction by a merchant that initiates a return of funds to the cardholder’s account. Most merchant accounts have a return fee and a transaction fee that are charged when a merchant issues a return.

A return is when a merchant credits a customer's credit card for a purchase that they had made. Pay close attention to how returns are charged on your merchant account. Most merchant accounts have a separate fee that is charged when you have to issue a return to one of your customers. This fee is typically called a return fee. When you issue a return, processors and banks will consider this a transaction, and they will therefore charge you a transaction fee as well.

Unless you don't pay a separate return fee on your merchant account, you need to add the transaction fee and the return fee together in order to figure out how much you are being charged to issue credit card returns to your customers.