If a refund is issued to a debit or credit card that has been lost, stolen, or expired, there are a few things that can happen. Here are some quick answers to common questions about refunds going to old cards:
Can a company still process a refund to my previous card?
Yes, it is possible for a company to still process a refund to your previous debit or credit card, even if that card is now inactive, expired, or you no longer have possession of it. When you make a purchase with a card, the merchant is provided your card details at that time for processing. If you later request a refund, the merchant will utilize the same card information they already have on file to credit back the money.
What if I closed the card account entirely?
If you completely closed the account associated with the card used for the original purchase, the refund will not be able to be processed by the merchant. When accounts are closed entirely, the card number is essentially deactivated and can no longer receive credits or debits. If the refund cannot be processed to the closed account, the merchant will have to issue the refund through an alternate method, such as sending a check to you directly.
Can a refund be redirected to my new card?
In most cases, the merchant will not be able to redirect the refund to a new card that differs from the original card used. The card details on file are those provided at the time of purchase, so the merchant will attempt to credit those back. However, it doesn’t hurt to contact the merchant and ask if they can update the card information to your new details so the refund is sent to the correct place.
What will happen if the refund goes through to my old card?
There are a couple different scenarios of what could occur if an old card receives a refund:
- Expired card – If the card is expired but the account is still open, the refund should successfully credit to the account associated with the card number.
- Lost/stolen card – If the card has been reported lost or stolen, the account is likely closed entirely and refunds will be unable to process. You’ll need an alternate refund method.
- Closed account – As mentioned previously, refunds cannot be completed to entirely closed accounts. You’ll need an alternate refund method if the account is closed.
How can I prevent refunds going to an old card?
To avoid the situation altogether, here are some measures you can take:
- Update payment details with merchant – If you get a new card, inform the merchant of new card details for future transactions.
- Leave account open temporarily – When getting a new card, leave the old account open until expected refunds have been processed.
- Request alternate refund method – Ask the merchant to send a check by mail rather than credit the old card.
What should I do if a refund went to an unavailable card?
If you find that a refund has already been issued to your previous card that is now unavailable, contact the merchant right away. Explain the situation and ask if they can reissue the refund through an alternate method, like a mailed check. Be prepared to provide verification that you made the original purchase and were expecting the refund.
If working with the merchant proves unsuccessful at retrieving the refund, you may need to work with your card issuer instead. They may be able to assist with claims processing to obtain the credited money through other means.
How long does it take for a refund to process to an old card?
The time frame for refund processing depends on the merchant’s policies. Some refunds may appear on old cards within a few days, while others can take weeks to fully process. If you have not received the refund to your old card after the typical processing time has passed, follow up with the merchant for assistance.
Can a merchant refuse to send a refund to an old card?
In most situations, if a legitimate purchase and valid refund request is made, the merchant is obligated to issue the refund as they cannot simply keep your money. However, they technically can refuse to send it to an expired or unavailable card account if that account is unable to accept the credit. In that case, you will need to provide updated payment details or an alternate method for them to send the money.
What are some tips for updating card details?
To avoid refunds and other problems whenever your card details change, be proactive in updating any merchants, subscription services, and other billers by:
- Contacting merchants directly to update expired or new card details on your customer account.
- Updating card numbers on all recurring online subscription services and memberships.
- Providing new card details on any bills paid automatically with saved payment data.
- Reviewing account details periodically to keep payment information current.
Can the merchant apply the refund as store credit?
Some merchants may offer or allow refunds to be applied as in-store or online credit to your account with them, instead of crediting back the original card. This may be an option to consider if you are unable to have the refund applied to your old card for any reason and still wish to shop with that retailer.
Conclusion
Having a refund credited to an old, expired, or unaccessible card account can create frustration. In some cases, the funds may successfully credit back to a closed account. However, it is often better to provide updated details to merchants whenever card information changes to avoid refund and processing issues. Communicate with retailers promptly if an unexpected refund goes to an old card so they can assist with getting your money returned through alternate means.
