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What is a Return Debit?

A Return Debit is the return of funds to a consumer, forcibly initiated by the issuing bank of the instrument used by a consumer to settle a debt.

Specifically, it is the reversal of a prior outbound transfer of funds from a consumer's bank account, or credit card.

Return Debits generally occur for one of four reasons:

  • Technical: Expired authorisation, insufficient funds, or bank processing error
  • Clerical: Duplicate billing, incorrect amount billed, or refund never issued.
  • Quality: Consumer claims to have never received the goods as promised at the time of purchase.
  • Fraud: Consumer claims they did not authorise the purchase 
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