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How does refund work with Bitcoin? Since Bitcoin can have big swing, some users might opt to get the refund of bitcoin after a while.

• wmf 14y ago
  Merchants should refund an equivalent value of BTC, not the same amount paid.
  • DrStalker 14y ago
    Why? Serious question, if I get a refund the amount isn't compensated for changes in the Australian dollar. Either the buyer or seller will lose out if the value of bit-coins change, so is there a compelling reason for picking which party that is other than "merchants have the control to give whatever refund amount they want"
    • wmf 14y ago
      Considering that customers generally get to choose whether and when (within a certain window) to ask for a refund, refunding the same amount of BTC gives customers a license to steal.
      • deleted 14y ago
        [deleted]
    • kamkazemoose 14y ago
      The main reason is because bitcoins are volatile. Most currencies are fairly stable, there won't be much fluctuation over the course of a week or month, for however long refunds are valid. This isn't true for bitcoins. Once you pay for something in bitcoins, you are trading those bitcoins for something of similar value at that time. I don't know what the bitcoin exchange rate is right now, so I'm just going to make up some numbers for an example. But say you buy a TV that has a value of $1000 USD. Let's say the current exchange rate is 10 bitcoins to 1 USD. Then you have to pay them 10,000 bitcoins for the TV. Say a month later, you decide you want a refund. So you return the TV. Well the TV still has a value of $1000 USD (ignoring deprecation) so you should get that same value back. If the bitcoin market has skyrocketed, to say 5 bitcoins to 1 usd, then you would get 5000bitcoins back, because those bitcoins have the same value. The merchant isn't acting as a bank to hold onto your coins for you, they are trading you something of value for something else, and if you want a refund, you'll get something of the same value back.
    • sksksk 14y ago
      If you visit a different country and pay for something in the local currency, and then later on you want a refund, you wouldn't expect the shop to refund you in your home currency?
• brian_cloutier 14y ago
  On their own, bitcoins are like cash in that they cannot be taken back once spent. However merchants can issue refunds as much as they'd like, and payment processors might offer a chargeback option. (although I'm not sure coinbase does)
• pavel_lishin 14y ago
  Are other currencies immune from this?
  • dllthomas 14y ago
    Most currencies that are dealt with online are more stable than BTC. But no, not "immune".
    • dllthomas 14y ago
      Too late to edit, but I realize the problem is more likely to come up in the face of sudden and significant deflation, which isn't something we see in other currencies terribly often.
      • xyzzy123 14y ago
        Surprisingly wide swings in fiat currency value can happen over the course of a month or two though. I imagine the volatility of BTC might cause problems for things like pre-orders. I once placed a large order with a US company; unfortunately the order couldn't be filled for about two months. I really wish they had billed me up front, because by the time they did bill me, the order cost 30% more in NZD.
        • dllthomas 14y ago
          While that's not quite the situation in question (you took my money and now I want a refund is stickier than "I want to pay you now rather than later" - in your case, you could always just cancel your order...), it's still relevant in that things could well have been reversed and (the bit I overlooked in my second comment) a rapid inflation in one currency looks a lot like a rapid deflation in others if you hold the inflating currency.