Consumer complaint received 2017-08-13
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: JPMORGAN CHASE & CO. (CT)

This current situation is a common one that I have experienced between my bank ( JP Morgan Chase, routing # XXXX, checking acct # XXXX ) and other merchants. Specifically, my complaint involves the movement of funds out of and into my account whenever I use my debit card for transactions. The following example typifies the many other times I have seen this happen between my bank and a merchant : On XXXX XXXX I purchased a lighting fixture from XXXX XXXX XXXX XXXX store in XXXX, CT, for the amount of {$73.00} using my debit card. When I got home later that same evening I logged onto my Chase account via the Chase web site and checked my balance. As expected, there was a pending transaction in the amount of {$73.00} from XXXX XXXX. As I also expected, the {$73.00} was deducted from the " available '' balance of my checking account. So far, so good .... The problem I am filing a complaint about involves my return of the light fixture to XXXX 's on XXXX2017 ( yesterday ). They issued me a credit receipt ( see attached ) which indicated that the refund of the original purchase price of {$73.00} would be issued back to my debit card ending in XXXX. Yet, when I got home later that evening on the XXXX, as well as again today on the XXXX, I still do not see a pending credit to my checking account. I called Chase bank customer service and spoke with a representative who advised me that she did not see anything pending in the system and further explained that they ( the bank ) are dependent on the merchant who is issuing the credit. I then called a XXXX 's store and spoke with a front-end manager who explained to me that the credit would take anywhere from 5 to 14 business days to be returned to my account! When I asked why, I was told that it depends on the bank and how quickly they post the refund - which is totally opposite of what the Chase representative had told me ( i.e. that the posting of the refund is dependent on how quickly the merchant issues it to Chase ). As I stated earlier on in this complaint - I have seen this phenomena many times over the years between many different merchants and many different banks with whom I 've done business with in the past ( and with whom I also held and used a debit card for transactions ). My gripe is this : Why is it that when a consumer makes a purchase using a debit card, the pending debit is logged against the consumer 's checking account almost immediately, yet when refunds are issued - the money sits off somewhere in the ether, in limbo ( XXXX knows where ) until it gets from the merchant to the customer 's account. Time after time I 've seen this happen and would like to know why there is such a lag when it comes to returning the funds to the consumer when there is no lag ( whatsoever ) when the merchant is collecting those funds from the buyer. This is not just unfair, it 's unjust and simple not right. XXXX XXXX, a once renowned brokerage firm is now out of business because, among other reasons, they were found guilty of " floating '' customer funds between settlement dates and the date the customer actually received the proceeds from that sale of stock/bonds/whatever. So why is this " float '' of customer 's refunds being allowed to perpetuate within the banking industry and systems. Once again, and I ca n't stress this point enough, I have seen this happen time and time again between many merchants I 've done business with and the many banks I 've held checking ( and debit cards ) with which I have also done business throughout my life. I believe that there is one and only one fair resolution to this " floating '' of funds back to consumers - and that 's to create a legislated mandate ( if there is n't one already ) that stipulates that the consumer 's funds must be refunded as quickly as they are withdrawn. This would seem common sense to most people and I ca n't help but suspect that this is n't yet one more money-making scheme practiced by the banks and/or the merchants.