Can I have a refund processed to a cancelled, locked, or expired card? | KOHO Help Center (2024)

FAQs

Can a refund be processed if a card is locked? ›

If you have locked a credit card in the app, you cannot use that card for new transactions until it is unlocked. However, a merchant can issue a refund to the same credit card, and the merchant processes the refund by reversing the original transaction and crediting your credit card account with the refund amount.

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.

The bank will realize that the card number is no longer valid, but will see the account it's tied to, at which point the refund should be transferred to the new card number/account automatically.

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.

Can a refund be made to a cancelled debit card? Getting a refund to a cancelled debit card can be tricky, but it isn't impossible. In most cases, to get a refund for a purchase made with a cancelled debit card, you're better off contacting the card issuer directly to explain the situation.

My SBI Credit Card account is blocked and few EMI's are running on card. Can I get the excess amount available on my card? Yes, you can get the Credit Balance Refund if available, post closure of all the EMI's running on your account.

If you receive a refund onto a credit card that you've cancelled, the issuer should send you a cheque for the purchase amount. However, there's not a lot of regulation governing this kind of situation, and many issuers can end up dragging their heels on releasing the funds.

No, refunds cannot be cancelled. In case you need to charge the sum you have refunded to your customer, you can make a new charge.

Once a refund is issued, it cannot be reversed. To initiate a new charge, the credit card or direct debit account must be charged again, and reprocessing the transaction will require the full credit card or account number.

Refund is issued to a closed bank account: If your customer's bank account is closed, the funds will stay in a limbo, waiting to be paid at the bank level. Your customer must contact their issuing bank to arrange an alternative method to receive funds via check, cash, etc.

Can I still receive money if my card is cancelled? ›

In short, there shouldn't be any issue. As long as the bank account is still active, the bank should receive the refund at the old card number and post it to the bank account it's attached to.

In most cases, the refund can still be received in the designated pool account with your card issuing bank, even if the card account itself is closed. You will need to provide the proof to your bank so they can try to trace or locate the funds.

If the card is just temporarily locked, it will need to be unlocked first prior to the merchant attempting the refund, otherwise, it will be declined. If the refund is declined, please unlock your card and then have the merchant re-attempt the credit.

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.

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.

When you lock a card, new charges and cash advances will be denied. However, recurring autopayments, such as subscriptions and monthly bills charged to the card, will continue to go through. Typically, so will bank fees, returns, credits, interest and rewards.

If card freeze is active against my card, will this prevent a chargeback or refund being processed? No, the card freeze feature will not prevent refunded transactions or chargebacks.

Locking will typically prevent new transactions but leave automatic payments, such as bills, bank fees, and subscriptions, enabled. It also won't stop transactions that you initiated before locking the card. After locking, you may still be able to pay with the card using a digital wallet.