Refund Policy

1. Introduction

The Loyalty Points Program offers a transparent and customer-friendly refund policy designed to ensure fair treatment while preventing fraud and abuse. This document outlines the conditions under which refunds are granted and the process for requesting refunds. Additionally, the Loyalty Points Program maintains a structured refund policy to ensure fairness while upholding strict fraud prevention and compliance measures. This policy aligns with credit card acquirer risk management standards to minimize chargebacks and prevent refund abuse.

2. Eligibility for Refunds

• Unused Loyalty Points: Customers may request a refund for loyalty points that have not been redeemed.
• Erroneous Transactions: Refunds will be granted for duplicate charges or system errors.
• Unauthorized Transactions: If a transaction is confirmed as unauthorized after review, a full refund will be issued.
• Fraudulent Purchases: If fraudulent activity is detected, the account may be restricted, and funds may be reversed.

3. Non-Refundable Scenarios

• Redeemed Points: Once points have been used for goods or services, they are no longer eligible for refunds.
• Terms Violation: Refunds may be denied if a customer violates program terms.
• Refund Window Expired: Refund requests must be submitted within 60 days of purchase.

4. Automated Refund Process & AML Compliance

• Original Payment Method Requirement: Refunds can only be issued to the original credit card used for the purchase; no alternative payment methods are permitted.
• Automated Refund System: Customers can request self-service refunds for unused points, subject to fraud prevention controls.
• Refund Frequency Limits: Customers may only request one automated refund per quarter (every 90 days) to prevent abuse.
• Tiered Refund Approval System:
  • Refunds under $500 will be processed automatically, if eligible.
  • Refunds over $500 or from flagged accounts require manual compliance review and approval.
• AML Screening for Large Refunds: High-value refunds may require additional identity verification.
• Chargeback Prevention Measures:
  • Refunds processed through the automated system reduce the likelihood of disputes and chargebacks.
  • Refund activity is continuously monitored and reported to acquiring banks as part of risk oversight.
  • Escalation procedures ensure disputes are resolved before leading to chargebacks.

5. Refund Request Process

• Submission: Customers must submit a refund request through the official customer support portal.
• Verification: The request will be reviewed, and transaction logs will be analyzed for eligibility and fraud screening.
• Approval/Denial Notification: Customers will receive an update on their request within 5-7 business days.
• Refund Processing: Approved refunds will be credited back to the original payment method within 7-10 business days.
• High-Risk Refund Review: Refunds that meet fraud risk triggers (e.g., multiple refund requests in a short period, mismatched transaction details, accounts with prior fraud flags) will require additional compliance verification before approval.

6. Fraud Prevention and Abuse Protection

• Identity Verification: Customers may be required to verify their identity before refunds are processed, particularly for high-value refunds.
• Fraud Triggers for Flagged Accounts: Accounts may be flagged for fraud risk if they:
  • Request multiple refunds within a short timeframe.
  • Show inconsistencies in personal or payment details across transactions.
  • Have a prior history of chargebacks or dispute abuse.
  • Engage in refund behavior that deviates from typical customer activity.
• Refund Limits: Excessive refund requests from a single account may trigger additional review or restrictions.
• Chargeback Prevention Strategy: Refund options are designed to proactively reduce chargeback disputes and maintain a low chargeback ratio.
• Refund Monitoring and Reporting: Refund activity is continuously tracked, and risk reports are submitted to acquiring banks for compliance.
• Blacklisting for Fraudulent Refund Abuse:
  • Customers engaging in refund abuse may be permanently blacklisted after a compliance review.
  • Before blacklisting, the compliance team must review transaction history and merchant dispute responses.
  • Customers can appeal a blacklist decision through an internal compliance process.

7. Customer Support and Resolution

• Dedicated Support Team: Available to handle refund inquiries promptly.
• Escalation Procedures: Customers dissatisfied with refund decisions may appeal through an internal compliance review process.
• Customer Education: Clear communication of refund policies on purchase confirmation pages and transaction emails.

8. Conclusion

This Refund Policy maintains a balance between customer satisfaction and fraud prevention, ensuring full compliance with credit card acquirer expectations, AML regulations, and risk management standards while providing a transparent and structured refund process.