An e-ticket is issued on Monday with MasterCard as the payment. A refund is requested on Tuesday, but the refund is never reported to ARC. How will this transaction appear on the client's credit card statement?

An e-ticket is issued on Monday with MasterCard as the payment. A refund is requested on Tuesday, but the refund is never reported to ARC. How will this transaction appear on the client's credit card statement?

• A. It will appear as a debit on the statement when the ticket is issued but will not be credited because the refund was not reported to ARC.
• B. It will appear as a credit on the statement when the refund is processed.
• C. It will not appear on the statement at all.
• D. It will appear as a debit for the refund amount.

Answer: (A)

When a sale and any later refund flow through ARC and the card network, the cardholder’s statement reflects what ARC reports. The e-ticket purchase creates a debit to the MasterCard account at the time of issue. If a refund is requested but ARC never reports that refund back into its system, the reversal is not posted to the card network, so no credit appears for that refund. In practical terms, the statement will show the original debit from the ticket issuance, and there will be no corresponding credit for the refund. The other options would only apply if the refund were processed and reported by ARC (a separate credit or an additional debit), which isn’t the case here.

When a sale and any later refund flow through ARC and the card network, the cardholder’s statement reflects what ARC reports. The e-ticket purchase creates a debit to the MasterCard account at the time of issue. If a refund is requested but ARC never reports that refund back into its system, the reversal is not posted to the card network, so no credit appears for that refund. In practical terms, the statement will show the original debit from the ticket issuance, and there will be no corresponding credit for the refund. The other options would only apply if the refund were processed and reported by ARC (a separate credit or an additional debit), which isn’t the case here.