Can I issue a refund to a closed credit card or account?
Yes and the card issuing bank will allow the refund to process and accept the funds.
Please note: It's not possible to refund an order to a different card. This is due to fraud and security reasons, this is quite common amongst many online purchases.
In general, there are the two scenarios you will encounter.
- Refund is issued to a Closed Bank Account: If your customer’s bank account is closed, the funds will be held by the bank. Your customer must contact their issuing bank to arrange alternative method to receive funds via check, cash, etc.
- Refund is issued to a cancelled credit card: If your customer has the same card issuer and bank account, then funds will be credited to that account. If the customer has yet to see the credit, please advise them to contact their financial institution by calling the phone number on the back of their card. Note: A business cannot refund to a different card. Refunds must go back to the card used for the original transaction.
Rarely, a closed account is no longer active and the credit card company cannot accept merchant refunds. In this case, the transaction may be bounced back. EtchRock will not reflect declined refunds. In this case you will need to issue a refund in another way.