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In our digital world, we like things to happen immediately. Unfortunately, it can take days, if not weeks, for a credit card refund to appear on a cardholder’s account.

Keep reading to find out how credit card refunds work, the types of refunds, and tips for getting your refund faster.

What Is a Credit Card Refund?

Before understanding what a credit card refund is, it’s helpful to know how credit card purchases work and who the main players are.

For every credit card transaction, two companies help facilitate the purchase: credit card issuers and credit card networks. The credit card issuer is the company that creates and manages the credit card, essentially lending money to the cardholder for them to make a purchase.

The credit card network is the business that processes the transaction electronically. It does this by transferring the money from the credit card issuer to the merchant. Whenever someone makes a purchase with a credit card, the credit card issuer is the one to pay the merchant. Later, the cardholder pays the credit card issuer back.

With credit card refunds, this entire process works the same way but in reverse. When a merchant refunds a purchase, the money goes to the credit card issuer. Then the credit card issuer returns that amount to the cardholder’s account.

Recommended: What Credit Score Is Needed to Buy a Car?

How Does a Credit Card Refund Work?

As noted above, when a consumer requests a credit card refund through a merchant, the merchant issues the refund directly to the credit card issuer, and the issuer then pays the account holder back. This is why merchants don’t typically refund credit card purchases in cash.

If the cardholder pays off their balance in full before a refund hits their account, they may end up with a negative balance. In this case, a negative is a good thing: It just means you have a credit on your account instead of the usual charges. You don’t need to do anything about a negative balance.

Types of Credit Card Refunds

There is only one type of credit card refund that consumers are involved in. Using a credit card network, the merchant and the credit card issuer work together to complete the refund and issue the money to the consumer.

Potential Delays for Credit Card Refunds to Appear

Exactly how long does it take for a refund to appear on a credit card? This can vary due to various reasons, and it can take time to process a refund. All the consumer can do is wait.

In general, the retailer’s return policy dictates how long a consumer will wait to get their refund. Retailers typically refund purchases within five to 14 business days. The return policy can usually be found on the retailer’s website.

Online returns can be particularly lengthy and usually take longer to process than in-store returns because shipping is involved. It can take over a week just for the returned package to arrive and be processed before the retailer initiates the refund process. The cardholder then has to wait for the refund to appear on their monthly statement.

Here are a few examples of common issues that cause refund delays.

Billing Disputes

Settling a billing dispute can take longer than a standard refund. In this case, the customer must file a dispute with the credit card company to receive a credit. Some examples of issues that may require a dispute are:

•   Being billed for a product you didn’t receive

•   Getting charged twice for the same purchase

•   Failing to receive credit for a payment

Mistakes happen, and billing disputes can take a while to resolve. In some cases, a credit card chargeback may be necessary.

Merchant Delays

All merchants have their own timeline for processing credit card returns. It can take a week or two.

Cases of Identity Theft

If someone needs a refund for a purchase on their account that is a result of identity theft, there are additional steps for reporting the incident and freezing their accounts. It can take quite a while to fully resolve fraudulent billing issues.

How Does a Credit Card Refund Affect Your Credit?

If a consumer doesn’t pay off their credit card balance while waiting for a return to process, they will carry the balance on their credit card. In addition to expensive interest charges, carrying a balance affects their credit utilization ratio, which can harm their credit score.

A credit utilization ratio compares how much available credit someone has to how much of it they’re using. Ideally, it’s best to keep the utilization ratio below 30%. SoFi offers free credit monitoring, a debt payoff planner, and other handy tools to make sure you aren’t taken by surprise.

Recommended: What Is the Difference Between TransUnion and Equifax

Tips to Get a Faster Credit Card Refund

The best chance at getting a quick refund is simply to make the return as soon as possible. If a consumer is in a rush to get their money back, they can request a store credit refund from the merchant, which will be issued immediately.

This means that the consumer must spend that money in the store, leaving the purchase amount on the credit card bill to be paid off. On the bright side, by doing this, the cardholder gets to keep any cash back or rewards points that the purchase earned.

The Takeaway

It can take anywhere from a few days to a few weeks for a refund to appear on a credit card. The exact timeline varies based on the merchant and credit card issuer involved, as well as other factors that can cause delays (such as slow shipping times). Patience is key, but it helps to be aware of the return policies and expected timelines of both the merchant and the credit card issuer.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

FAQ

How long do refunds take to show up on credit cards?

It can take as little as three days for a refund to show up on a credit card, but it can also take longer depending on the merchant and credit card issuer involved. Returns that require shipping back merchandise can take the longest because the consumer has to wait for the merchandise to arrive and be processed before a refund can be initiated.

Why is my refund not showing up on my credit card?

A refund can take days, if not weeks, to show up on a credit card. Don’t be afraid to check in with the credit card issuer on the status of a refund. Remember that you can also review your online account statement instead of waiting for a new statement to come in the mail at the end of the month.

Why do card refunds take so long?

Credit card refunds can take a while for a few reasons, and all merchants and credit card issuers have different refund timelines. Slow shipping times for online purchases or issues related to identity theft can cause additional delays.

How does a refund appear on a credit card?

When a merchant issues a refund for a purchase, they don’t return the money to you directly. Instead, they ask the credit issuer to credit your account with the refund amount. This amount will appear on your credit card statement as credit.

Do credit card refunds take longer than debit card refunds?

Credit card refunds may take longer than debit card refunds because the transaction goes through the credit card processing service. The merchant must return the funds to the credit issuer, which then credits your account.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

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Physical therapy (PT) school costs in the U.S. can range between $7,500 and $57,000 per year, depending on whether you live in the same state as the program you attend.

And when it comes to how to pay for PT school, there are several funding options for prospective students — from grants and scholarships to federal financial aid, work-study programs, private student loans, and more.

Keep reading to find out how much PT school costs and how to pay for it.

Cost of Physical Therapy School

The cost of PT school can vary significantly depending on the program you attend and your location.

With that said, the average total cost of education for PT programs in the U.S. is $106,051 for in-state students and $125,287 for out-of-state students.

7 Ways to Pay for Physical Therapy School

Now that you have an idea of how much PT school might cost, your next priority is likely figuring out how to pay for it once you’ve been accepted.

Below are seven different options you can look into to help cover the costs of attending PT school.

1. Grants

Physical therapists are in high demand, and there’s been a corresponding increase in the number of grants available to students who are pursuing a career in PT.

Grant funding that helps students with PT school costs is sponsored by a variety of sources, from the federal government to public and private colleges and universities, professional organizations, and corporations.

It’s a good idea to kick off your search for grant funding with federally-backed programs that target PT majors. If you’re enrolled in a PT program from an accredited college or university, you may be eligible for the following federal grants.

Recommended: Grants for College

The Federal Pell Grant

The Federal Pell Grant is available to undergraduate students with demonstrated financial need. Graduate-level students in Doctor of Physical Therapy programs are not eligible, but students in Physical Therapy Assistant (PTA) programs may apply. The amount of awarded funding maxes out at $7,395 for the 2025-26 school year. The amount awarded can change yearly and is based on the student’s level of financial need, attendance status (full time or part time), and the cost of the program itself.

The Federal Supplemental Educational Opportunity Grant

The Federal Supplemental Educational Opportunity Grant (FSEOG) is available to eligible undergraduate students who have already qualified for a Pell Grant, still demonstrate financial need, and are enrolled in a participating college or university.

To apply for an FSEOG, you can work with your college’s financial aid office and learn if you’re eligible to receive anywhere from $100-$4,000.

US Department of Health and Human Services (HHS) Aid

The U.S. Health Resources and Services Administration (HRSA), an agency of the HHS, offers a variety of financial aid opportunities that are designed to assist students entering into the health care profession. One example is the HRSA Scholarship for Disadvantaged Students, which is a campus-based grant program that provides financial assistance to students from disadvantaged backgrounds. Eligible recipients must be pursuing a degree in an approved health care field (PT being one of them), and the college or university the student is attending determines their eligibility and award amount.

Colleges and Universities

There are several campus-based grants and payment programs available to PT students to help cover PT school costs. Once you’ve compiled a list of preferred PT programs, you can search for these grants and scholarships on the schools’ websites or speak to someone in their financial aid departments to get started.

Private Organizations

Private and professional organizations can be solid sources for grants, scholarships, and fellowships that help aspiring PTs pay for PT school.

In many cases, the funding is extended on a regional basis, so searching for state or local organizations is a great way to seek financial aid that’s relevant to PT in your particular area.

The American Physical Therapy Association (APTA) sponsors several grants and scholarships for PT students, including the Outstanding PT Student and PTA Student Awards and the Orthopedic Section Outstanding PT/PTA Student Award, among others.

An example includes the Foundation for Physical Therapy Research (FPTR), which administers research grants for graduate-level PT students in a variety of rehabilitation techniques, including pediatric and geriatric PT. In addition, the FPTR offers $5,000 in award funds from their Promotion of Doctoral Studies Scholarship for high-performing PTs and PTAs pursuing doctoral studies at an accredited college or university.

2. Scholarships

When considering how to pay for PT school with a scholarship, consider searching scholarship databases for PT scholarships. Websites such as CollegeScholarships, Scholarships 360, or Scholarships.com all offer comprehensive lists of scholarships available specifically to students studying PT.

In addition to your course of study, you can factor in other talents or qualities that may help you qualify for a scholarship, such as where you grew up, your ethnicity, or your gender.

Review the scholarships available at your specific school as well.

Recommended: Find Financial Aid Options for All 50 States

3. Federal Student Loans

To help PT students offset their PT school costs, federal student loans are another prime way to secure financial aid.

Federal financial aid for PT students can come in the form of various federal student loans. They cover the cost of attendance, living expenses, fees, and more to help you pay for your PT education.

On top of that, federal student loans offer specific perks and protections such as:

•  Deferment (eliminated for economic hardship or unemployment for loans made on or after July 1, 2027)

•  Forbearance (capped at nine months in any 24-month period for loans made on or after July 1, 2027)

•  Student loan forgiveness options

•  A six-month grace period for new grads

Most federal student loans (aside from PLUS loans) don’t require a credit check, so borrowers won’t need to add a cosigner to the loan. Undergraduate students may also qualify for Direct Subsidized Loans, which are awarded based on financial need. Students are not responsible for paying the interest that accrues on subsidized loans while they are actively enrolled or during qualifying periods of deferment, such as the grace period.

4. Private Student Loans

Private student loans can be obtained from private lenders such as banks, credit unions, or other financial institutions and can help bridge the gap when federal student loans aren’t enough to pay for PT school. That said, it may be tricky for PT students to qualify for private student loans without a cosigner, especially if they have a lower credit score or no credit at all.

In some cases, aspiring PT students may need to ask someone to cosign for a private student loan to help them obtain a lower interest rate and more favorable loan terms.

While private student loan borrowers aren’t afforded the same perks and protections as they are with federal student loans, there are still benefits to using private student loans to pay for PT school.

Here’s a guide to private student loans that can help you learn more about the available options.

5. Part-Time Work

Whether it’s a side hustle or a sanctioned work-study program, there are other ways to pay for PT school that don’t involve a loan, grant, or scholarship.

On Campus

An on-campus work-study program is typically offered by the college or university where a student is attending PT school.

In the case of the Federal Work-Study Program, students are eligible for part-time employment while enrolled in PT school if their college is a participating member of the program and the student meets the program’s eligibility requirements. Checking with the school’s financial aid office is the best way to determine whether or not they offer a Federal Work-Study Program.

Off Campus

The Federal Work-Study Program also offers off-campus employment for a private nonprofit organization or a public agency, typically for work that’s performed in the public interest.

That said, finding your own job on or off campus (that’s not tied to federal aid) is also a possibility. Whether it’s a part-time job at a local cafe, waiting tables at a restaurant, or becoming a nanny for a nearby family, there are other options for figuring out how to pay for PT school.

6. FAFSA

If you’re thinking about using federal student aid to pay for PT school, the first step is filling out the Free Application for Federal Student Aid (FAFSA®).

The FAFSA is a free form that’s completed by current and prospective PT students to determine their eligibility for federal financial aid, including loans, scholarships, and the programs mentioned above.

Take a look at this FAFSA guide for more information about what the FAFSA is, which types of financial aid you may be eligible for, the requirements for receiving funds, and important dates to know.

7. PSLF

Public Service Loan Forgiveness (PSLF) is a federally-backed program that forgives the remaining balance on a borrower’s Direct Loans after:

•  They’ve made 120 qualifying monthly payments.

•  They’re under a qualifying repayment plan.

•  While they’re working full-time for a qualifying employer.

The requirements for receiving PSLF are strict, so if you are pursuing this option, be sure to read all the program instructions and paperwork closely.

When deciding how to pay for PT school, this is one reason many prospective students turn first to federal financial aid.

It’s Student Loan Forgiveness programs like these that are among the many perks and protections of federal student loans that can’t be accessed through private student loans.

How Much Can Physical Therapists Make?

While PT school costs can seem a bit steep, the compensation for recent PT grads can potentially justify the price tag for today’s typical PT program.

In 2024, physical therapists made a median salary of $101,020, with the top 10% bringing in more than $132,500 and the lowest 10% earning $74,420.

The Takeaway

When it comes to how to pay for PT school, there are several ways aspiring students can receive financial aid — including grants, scholarships, work-study programs, federal student loans through FAFSA, and private student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.

FAQ

What is the average student debt for a physical therapist after graduating?

PTs graduate with an average total student debt amount of around $156,000.

How much can PTs expect to make after graduating?

An entry-level physical therapist salary can range from $65,000 to $85,000 or higher per year, and the median salary among all PTs was $101,020 in 2024.

Will the military pay for PT school?

Each branch of the U.S. Armed Forces has different programs and requirements for receiving financial assistance for PT school. Visiting their individual websites is the best way to determine eligibility.

Photo credit: iStock/marinesea

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