Credit card refunds: How they work and how to request one

You never know when you might need to request a refund on a credit card. The quickest way to get one is to work directly with the business. But that’s not always enough, so sometimes it might be worth asking your credit card issuer for assistance. 

But it helps to know when and why you might do that. Here’s more about merchant refunds—and what might happen if your credit card issuer gets involved in disputes.

Key takeaways

• If you want a refund on your credit card, it’s best to ask the merchant you made the purchase from.
• When a refund request is honored, the merchant returns the funds to the credit card issuer. Then the card issuer credits your account.
• You can check merchants’ return policies for an idea of how long your refund might take.  
• Merchant refunds aren’t the same as credit card disputes and chargebacks. Chargebacks are often related to billing errors and fraud.

When you need a credit card refund, the best place to start is the place you made your purchase. 

You can contact the merchant and explain your situation. If the merchant agrees to the refund, you’ll get a credit to your account. 

It might take some time for the credit to show up on your account. Some refunds show up immediately, while others show up days later. 

When a consumer decides to return an item, the credit card refund process typically works like this:

1. The merchant sends the funds from its bank, called the acquiring bank, to a credit card network.
2. The credit card network routes the refund to the credit card issuer. 
3. The issuer credits the cardholder’s account for the returned amount. 

There’s no set answer to how long it takes for a refund to appear on a cardholder’s account. It depends on a few different factors, like whether you ship the item back to the merchant or return it in person and where you are in your credit card billing cycle. For a rough idea, though, many merchants show their individual return policies on their website. 

It’s worth noting that if your billing cycle ends while your return is being processed, the return will likely be reflected on the following month’s credit card statement.

Working directly with the merchant can be the fastest way to request a refund. Here are some steps you might take:

Before picking up the phone, it might be a good idea to visit the merchant’s website to learn about its current policies. In some cases, you might be able to avoid waiting on hold by requesting a refund online or by sending an email.

Have on hand a receipt of your purchase and a confirmation number or other type of document that proves your purchase.

It might be helpful to have your credit card nearby in case the merchant doesn’t keep card numbers on file. This is important if you’re talking to the merchant in person, on the phone or online.

The merchant should let you know if you’re eligible for a refund based on its terms and conditions. If the company approves it, wait a few days for the refund to complete.

If you don’t see anything after 14 days, reach out to the merchant again or contact your credit card issuer to see what your next steps might be. There’s a chance your card issuer might start the process of a chargeback.

Chargebacks involve disputing a charge with your credit card company. If talking to the merchant directly doesn’t solve the problem, this is one step people might take next. But keep in mind, disputes and chargebacks are related to billing errors or cases where a merchant didn’t honor its terms and conditions. And credit card issuers can’t issue refunds on behalf of merchants.

According to the Fair Credit Billing Act, you have the right to dispute charges as long as the dispute is made within 60 days of the charge appearing on your credit card statement. Your credit card issuer then has up to 90 days to resolve the dispute.

Disputing a credit card charge is different from asking for a refund.

• Disputes and chargebacks: When you dispute a credit card charge, you’re usually asking your credit card company to correct a billing error on your account. Or you might be asking your credit card company to have a merchant revisit a charge if you believe the merchant violated its stated terms and policies. But keep in mind: During a dispute, Capital One doesn’t ask merchants to reconsider those terms and policies.
• Merchant refunds: Requesting a refund covers many situations where you want your money back, like when you’re dissatisfied with the merchant’s policies or service or when you need to cancel plans. Capital One can’t issue a refund on behalf of a merchant. Even if you charged a ticket or reservation to your Capital One card, the merchant is the one who will be able to issue a refund.

Here are some answers to common questions about requesting a credit card refund.

In most cases, initiating a return with a merchant is a straightforward process. But if you believe there’s a billing error with a charge on your Capital One credit card account, the information on Capital One’s disputes support page may be helpful. And if you see a suspicious charge, you can report it as fraud.