I had a dedicated server account at Hostgator (Hostgator US) which I never used. After leaving it for one year, it was automatically renewed and a huge amount was charged to my credit card (it is a direct payment).
I've immediately contacted the web host's support staff and they refunded it but unfortunately a large amount was not recovered and they doubt it is due to conversion charges (I am from India).
As per my knowledge, when you reverse customer's payment your payment gateway/processor process the full refund (the merchant told the same) including conversion charges. PayPal does that.
I requested the web host's support team to ask their payment gateway for clarification or let me know the payment gateway details. They refused to provide details and denied any further conversation.
My bank staff said there are chances for conversion charges for both payment and reversal but admitted that the charge levied on my card is too high. They accepted my request and investigating into the issue.
Could anybody tell me that if it is true that you will be charged both for making a payment and getting a refund? Isn't it payment processor responsibility to refund the full amount when the payment is reversed? How do I proceed now?
It is unfortunate that I left my card info in their billing system. In fact, my initial payment was made from PayPal but added this credit card to the billing system when I purchased a domain some time ago. It was never intended for auto payment.
Had the auto-renewal made from PayPal I would get a full refund but as this is related to my credit card it costed too much.