Canceling your debit card doesn’t prevent you from getting a refund. If your debit card is canceled before you can receive your refund, it will often deposit into your checking account. If your bank account is canceled, you’ll need to reach out to your bank to find another avenue for receiving your refund.
No one likes to cancel their debit card. It is a necessary evil in this day and age. It can still be frustrating when you expect a refund for something that you had already paid for with the canceled card. Merchants usually offer refunds back to your original account if it is still open. If you close your original account, securing your refund may be more complicated. Processing the final refund transaction is up to your issuing bank. You should know that no matter the case, you can find a way to get your deserved refund. How you get refunded varies depending on your situation. Keep reading to learn more about possible scenarios and how to communicate with your merchant and issuing bank to get your refund.
What happens to a refund that goes to a canceled debit card?
If the original account of the canceled debit card is still open, funds will likely go straight into the account. If you close your original account or the bank rejects the transaction for some other reason, the issuing bank will likely hold the funds. You can either contact your bank to coordinate receiving your refund payment or agree upon an alternate refund with the merchant.
Can banks issue a refund to a canceled debit card?
Scenario 1: You canceled your debit card, but your bank account is still open.
You may have had to cancel your debit card because you lost it or had fraudulent activity. Don’t worry. As long as your bank account was not closed, you can get your money back if you cancel a debit card. The refund will show up on that same account too! If you’ve canceled your card but haven’t closed out the account, it is possible for a merchant to refund money back onto that canceled debit card. You can then use the refunded money on your new debit card. If you are curious about options to replace your card, consider a prepaid debit card for simple money management.
Scenario 2: Your bank account is closed.
If you closed your bank account altogether and need to get a refund, then it’s just going to take some patience. Funds involved in an incomplete transaction will stay there until they’re paid by the issuing bank. It is possible that your refund gets credited to a different account with the same bank. Contact your issuing bank about receiving funds, either via cash payment or check if eligible for either of those options. Most banks will accept requests over the phone. You can find a good number to call on the back of your canceled card or online. Sometimes banks ask their customers to submit written requests as well, so make sure that all documentation is returned before expected deadlines! You’ll need to open a new account. If you want to go with a prepaid debit card, compare which bank accounts are best.
In either scenario, if the issuer declines the transaction…
Even though it is rare, your card issuer may reject the refund. If the bank declines your refund transaction, your merchant will be notified. On their end, it usually shows up as a positive chargeback or generic deposit. In this case, you should contact them or ask for an alternative method of refund. A good alternative option is to ask the merchant for a refund that does not require cash. They may be able to provide compensation in a different form (i.e. a gift card or store credit). Work with them to issue refunds on whatever terms are best for both parties involved. If you’re still having trouble with your refund, ask the merchant if they can transfer the funds to another account that is in good standing. If your merchant claims to have sent the refund, but it is not found by the issuing bank, ask the merchant for the Acquirer Reference Number for the transaction. This will help expedite any verification process and get your money back faster!
Conclusion: How to get a refund if the debit card is canceled?
If you’re reading this post, then it likely means that your debit card has been canceled. You may have requested a cancellation due to fraudulent activity or other reasons. Regardless of why your card was closed, most providers will issue a refund back into your checking account and the process is usually pretty straightforward. Communication with both your bank and merchant can make all the difference in getting your money back! Contact the bank issuing the refund as well as the merchant who has done business with you on that card to find out what they need to release your funds. The more information each party provides upfront about their policies regarding cancellations and refunds, the quicker and easier you get your refund. Keep learning about debit cards with SuperMoney!
- If your debit card is canceled, your refund will deposit into your bank account.
- As long as your bank account is open, canceling your debit card should not affect how you receive your refund.
- If your bank account is closed, contact your bank to find out how else you can receive your refund.
- If your card issuer declines your refund, contact the merchant you requested the refund from to discuss other refund options.
View Article Sources
- How Do Prepaid Credit Cards Work? – SuperMoney
- Best Prepaid Debit Cards – SuperMoney
- 10 Things You Didn’t Know About Using Debit Cards – SuperMoney
- What Happens if. Refund is Made to a Cancelled Card – Credit Mantri
- What Happens to a Refund that Goes to a Canceled Debit Card – Citizens Bank