How to Get a Refund That Was Sent to a Canceled Credit Card
When a refund goes to a canceled credit card, it may seem like your cash is lost for good. However, getting your money back only requires a few calls to the credit card company and the merchant, as well as a little patience.
There are ways to avoid a refund going to a canceled credit card and methods to recover the cash if it’s stuck in limbo between the retailer and the credit card company. Keep reading to learn how to avoid this situation and what your options are.
Table of Contents
Key Points
• To prevent a refund from going to a canceled credit card, reach out to the merchant before the refund process even begins.
• The refund process depends on whether your canceled card account is still open and on the credit card issuer’s policies.
• Steps to take to get the refund include seeing if the refund was accepted by the card issuer, calling your credit card company, and being patient.
• Other options to avoid a refund going to a canceled card include auditing your transactions before canceling your credit card and keeping an eye on your finances.
• Getting a refund from a canceled credit card typically takes 7-14 days.
Can You Stop a Refund From Going to a Canceled Credit Card?
To avoid a refund being issued to a canceled credit card, the simplest approach is to reach out to the merchant before starting the refund process.
Ask the business if it’s willing to refund the purchase in a different way, which will likely be store credit or a gift card. In some instances, it could mean receiving cash back or refunding the purchase to a different credit card.
This may involve calling customer service or visiting the brick-and-mortar location. If the business is willing to refund the purchase differently, you’ll avoid the lengthy process of receiving a refund that had been issued to a canceled credit card.
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Steps for Getting a Refund on a Canceled Credit Card
When a refund goes to a canceled credit card, there are a few options to ensure you don’t lose the credit. It can help to know a little about how credit cards work, but it’s not essential.
1. Check if Your Canceled Card Account Is Still Open
If your credit card was lost or stolen and you had to cancel it, don’t worry. If the account is still open under a new card number, the refund from the merchant will be credited back to the new card.
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2. See if the Refund Was Accepted by the Card Issuer
When there’s no longer a credit card associated with the account, things get trickier. What happens next depends on when you closed the account.
If you can still log in to your account online, you may see the refund. But if you closed the account long ago and can’t access it online, you should first reach out to the merchant and ask for the Acquirer Reference Number (ARN).
3. Request the Refund
If the merchant tells you they posted your refund to the old account, call the credit card company and request a refund via check. This is when the ARN can come in handy. In some cases, the credit card company or bank may ask for a written request.
4. Be Patient
A standard credit card refund usually takes a week, but getting a refund from a canceled credit card can take longer, depending on merchant policy, credit card company policy, and even the returned item or service. You can typically expect a refund in 7-14 business days after your request.
5. Return Directly to the Merchant for the Refund
If several weeks pass without a refund, it may be time to return to the store to track it down. In some cases, the card issuer may reject a refund to a closed account and send it back to the store. Reach out to the store’s customer service and ask if they received a bounce-back from the credit card issuer. If so, you might be able to request a refund in the form of store credit or cash.
This process can be complicated and tedious, depending on the retailer’s size and bookkeeping system. An independent retailer is unlikely to have a customer service department, so going to the store with receipts and reference numbers could speed up the process.
How to Avoid a Refund Going to a Canceled Card
Asking for an alternative refund method is one way to avoid a refund going to a canceled card, but here are a few other options to avoid a lengthy process.
• Conduct an audit of transactions before canceling a credit card. Are there any purchases you plan to return? Keeping the card open until the refund is processed could make sense.
• Keep an eye on finances. A money-tracking app can help you keep tabs on your spending, avoiding the confusion of which refund goes on what card. Some services also offer credit score monitoring at no cost and a debt payoff planner.
• Think long and hard before canceling a credit card. Canceling a credit card can harm your credit score, and canceling one out of the blue may lead to more issues than benefits. Closing a card without thinking it through could lead to refunds on a canceled card.
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The Takeaway
The simplest way to prevent a refund from going to a canceled card is to go straight to the merchant and ask them to refund the amount using alternative means. That could mean getting store credit, which will sidestep the credit card company and allow you to get your money back faster. If a refund does go to a canceled card, it’s not lost for good, but it involves taking a few steps to recover it.
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FAQ
Can I get a refund that was sent to a closed credit card?
Yes, but getting the refund will depend on whether the account is still open, how long the card has been closed, and the credit card company’s policies. Often, the issuer will either apply the refund to the account or send the funds to the cardholder by check or another payment method.
What happens if the credit card issuer rejects the refund to a closed account?
If the card issuer rejects the refund because the account is fully closed, the funds are typically returned to the merchant. In that case, you’ll need to contact the merchant directly to request the refund again.
What is an ARN?
An Acquirer Reference Number (ARN) is a unique tracking number assigned to a credit card transaction once a refund is processed. The merchant or payment processor can provide this number, and the credit card issuer can use it to locate the refund in the payment network and track its status.
How long does it take to get a refund from a canceled credit card?
Refunds to a canceled credit card can take longer than normal, depending on the merchant’s policies and the credit card issuer. Following up with both parties can help speed up the process.
Can I request a refund in a different form if my card is canceled?
Yes. Merchants may offer alternative refund methods, such as store credit, a gift card, cash, or a refund to a different credit card. Contact the merchant before the refund is processed to arrange this.
Photo credit: iStock/MBezvodinskikh
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