What happens if you refund on a different card?
Can a refund be made to a different card? No, typically refunds will only be credited back to the original payment card. Customers might prefer funds to be credited to a specific bank account to help clear some credit card debt.
Do you have to use the same card for a refund? Yes, funds can only be refunded to the card that was used to make the payment. This should be made clear in a retailer's returns policy.
Refunds always go back to the original payment source -- in your case, the bank account that the card was associated with. As long as the new card is linked to the same bank account, even though the new card has a new number you can use the new card to spend the refund amount.
Technically speaking, receiving a refund on a different card, especially a debit card when using a CC for the original method of payment, is considered fraud. Especially x2 if you would normally lose any points or rewards for using your amex if you returned it to the proper card.
To protect your business from fraudulent refund activity, you must always process a refund to the same card that was used for the original sale.
Refunds are issued onto the card they were taken from. If your card has expired or been cancelled, then the transaction will be handled by your card issuer and automatically credited to your replacement card.
Banks will usually allow refunds to process successfully regardless if a card's been deactivated or the account's been closed. Refunds take 3-5 business days to appear in your account. Refunds can't be applied to an alternate payment method and will be returned to the card used for the original transaction.
If the merchant says the refund was posted to the old account, call the credit card company and request a refund via check. This is when the Acquirer Reference Number can come in handy. In some cases, the credit card company or bank may ask for a written request.
In most cases, the bank will redirect the refund to your customer's new or replacement card. If your customer does not have a new card, the bank will usually send the refund directly to their bank account.
The retailer will not be able to give you cash or make the refund to a different credit or debit card. When you purchase something with your credit card, the issuer makes the payment to the retailer on your behalf.
Do you need the same credit card to get a refund?
First of all, every credit card merchant account provider requires a merchant to issue refunds only to the original form of payment.
The bank will realize that the card number is no longer valid, but will see the account it's tied to, at which point the refund should be transferred to the new card number/account automatically.
When you order a new card, the old one does not automatically cancel. Typically, both cards remain active until you explicitly close the old account or report it as lost or stolen.
Refunds must go back to the card used for the original transaction. You cannot refund to a different credit card. Although rare, there are instances when a closed account is no longer active and the credit card company cannot accept merchant refunds.
If a credit card is expired or cancelled but they have been issued a new card by the same financial institution, the refund will reach the new credit card account. If they no longer have an account with the same financial institution, they should contact the issuer directly to verify the details of the pending refund.
If you have paid your card down to a zero balance before receiving your refund, you will have a negative balance on your credit account — and any future purchases will be applied to the negative balance first.
Can a refund be made to a different card? No, typically refunds will only be credited back to the original payment card.
Remember automatic payments
Keep in mind that any bills that you'd set up to automatically pay with your credit card — subscriptions, gym memberships and so on — may continue to be charged to the old number.
Answer: Once a refund is issued, it cannot be reversed.
If your credit card has expired or if you have cancelled your credit card (due to a lost or stolen card, for example) the refund will be applied by your card issuer to your new or replacement card. No action is required by you.
What happens if a refund is made to a closed account?
If your bank account or credit card has closed since obtaining a refund, please allow up to 60 working days for the funds to land. If you have used a switching service then some banks will automatically transfer any payments already on their way to your new account.
Getting a refund from a merchant is another way you might end up with a negative balance. If you pay off your balance before getting a refund or if the refund is more than your current balance, that refund will result in a negative balance.
The refund is credited after your credit card bill was generated, and you have already paid the bill. If you notice, this is the same scenario as before, with the only difference being—you choose to pay the bill before the refund was credited.
Refunds to expired credit cards are handled by the guest's card issuer and, in most cases, credited to the guest's replacement card.
Cancelled debit cards still process credits/refunds, it'll route to your checking account.
