What's Wrong #7 - Making refund

Some companies and government agencies in Singapore prefer to make refunds by cheque. They refuse to adopt a more efficient way to refund the money, such as crediting the credit card or bank account where the initial payment was made.

Why are they reluctant to change?

It could be plain laziness. It could be lack of initiative. They could be waiting for someone above them to tell them to change.

But, it could be due to dishonesty. The refund cheque could have got lost in the post or have been overlooked by the payee.

When the refund cheque are not banked in for six months, the paying company or agency is able to write back the refund and treat it as revenue for their organization.

What's wrong?
It is costly and inefficient for the economy, for the bank, for the business and the customer to continue with the old practice. This cost is borne by other parties, and not just the payer.

It is dishonest for the payer to benefit from the failure of the payee to bank in the refund cheque. They payer will continue with the inefficient and outmoded practice.

How to put it right
The government should pass a law that require all unclaimed refunds to be donated to a charity. The paying company or agency cannot benefit from the unclaimed refunds. 

If the unclaimed refund in a year is less than a threshold, this requirement can be exempted.