A ticket is issued on Tuesday. Visa is the form of payment. The client returns Friday and requests a refund on that ticket. You refund the ticket in your GDS. Which of the following may occur with regard to the credit card charge?

A ticket is issued on Tuesday. Visa is the form of payment. The client returns Friday and requests a refund on that ticket. You refund the ticket in your GDS. Which of the following may occur with regard to the credit card charge?

• A. The client may be debited on one statement and credited on the next statement
• B. The client may be debited on two separate statements
• C. The client will be charged an additional processing fee
• D. There is no effect on statements

Answer: (A)

The concept being tested is how credit card refunds posted through a GDS can appear on a cardholder’s statements due to posting timing. When a ticket is charged to a Visa card on Tuesday and the refund is issued on Friday, the reversal is processed as a credit to the same card account. However, depending on how the issuer and the payment network handle postings, the original charge can appear on one statement as a debit, while the refund posts on a future statement as a separate credit. In other words, the customer may see a debit on one statement (the original charge) and then a credit on the next statement (the refund). This timing-based posting explains why the outcome can be two different statements showing opposite effects. The other options don’t fit the typical refund behavior. A refund is a credit, not a debit, so two separate debits isn’t standard. A processing fee isn’t inherently triggered simply by issuing a refund in the GDS. And there will be some effect on statements whenever a refund is processed, so “no effect” isn’t correct.

The concept being tested is how credit card refunds posted through a GDS can appear on a cardholder’s statements due to posting timing. When a ticket is charged to a Visa card on Tuesday and the refund is issued on Friday, the reversal is processed as a credit to the same card account. However, depending on how the issuer and the payment network handle postings, the original charge can appear on one statement as a debit, while the refund posts on a future statement as a separate credit. In other words, the customer may see a debit on one statement (the original charge) and then a credit on the next statement (the refund). This timing-based posting explains why the outcome can be two different statements showing opposite effects.

The other options don’t fit the typical refund behavior. A refund is a credit, not a debit, so two separate debits isn’t standard. A processing fee isn’t inherently triggered simply by issuing a refund in the GDS. And there will be some effect on statements whenever a refund is processed, so “no effect” isn’t correct.