Originally Posted by NemesisEnforcer

You forgot a big one.

A merchant cannot refund a charge with cash . The refund must be applied back to the credit card. Otherwise, it's considered money laundering and the merchant will be reported to the IRS for further investigation. The only way to give a customer cash for a charge is if the merchant account was terminated.

I got audited by the underwriters and that's what they were looking for.