Why does it take so long for a company I bought something from to refund me? They say it can take up to 10 working days. Why can’t it be paid back immediately as quick as I paid them for the original order?

Question

It was an item that was never in stock to begin. They weren’t sure how I managed to place the order. I paid with a straight bank transfer, no debt or credit.

In: 136

Answer 1

My understanding is that this is usually due to the banking institution holding on to your funds so they can lump it in with some kind of profit generating investment so the longer the wait, the more potential for profit. This happens with Favor and DoorDash orders that are refunded, where the funds have been released almost instantly by the vendor yet it still takes 2 weeks to show back up in your account.