Right. I don't see how you could call it "money laundering" unless I'm missing something.

As to whether "Merchants are not allowed to process refunds on Credit Cards to a different Credit Card," I'd like to see the authority for that statement. I know most *won't* but I'm not sure that means they can't.

(A while back I had a refund coming on a charge that was made quite a while earlier to a card I had cancelled in the interim, and the merchant said it was no problem, that he could refund the credit to any card in the same name as the charge. I gave the merchant the number of one of my current credit cards and the refund posted without problem. And the card the refund came on was a different brand of card than the one I had made the charge on.)