Occasionally, you might need to refund a customer who has canceled their original payment card or whose card has expired. Your customer may have questions about how the refund will be processed and received.
This guide explains what happens when you refund a canceled or expired card and what you can tell your customer.
In this article
Card brand rules for refunds
To protect cardholders, card brand rules require merchants to refund the original card used for the purchase. For security purposes, you cannot refund the purchase to a different card, even if it's owned by the same customer.
| This rule is in place to prevent fraud, such as using a stolen card to buy something and then refunding onto a different card! |
What happens to the refund?
In most cases, when you issue a refund to a canceled or expired card, the customer's bank will redirect the refund to their new or replacement card. This is a standard procedure designed to ensure the customer receives their money.
What to tell your customer
When a customer asks about receiving a refund on a canceled or expired card, you can assure them that their bank will typically handle the redirection.
| You can explain that the refund will likely appear on their new or replacement card statement. |
When a refund can't be redirected
In some situations, the customer's bank may not be able to redirect the refund. This might happen if the customer doesn't have a new card or no longer has an active account with the bank.
In these cases:
The money will be returned to Helcim.
You will receive an email notification from Helcim with the details of the refund.
You will need to refund the customer by check or cash instead.
Next steps
If you receive a notification that a refund has been returned to Helcim, contact the customer to arrange an alternative refund method (check or cash).
For any further questions about specific refund situations, please contact Helcim support.
FAQ
Can I refund a purchase to a different credit card if the customer asks?
No, card brand rules mandate that refunds must be issued to the original card used for the transaction.
How long does it take for a refund to appear on the customer's account?
Refund processing times vary depending on the customer's bank. It typically takes 5 to 10 business days for a refund to appear on their statement.
What should I do if the customer no longer has an active account with the bank?
If the refund cannot be processed through the bank, the funds will be returned to Helcim, and you will need to refund the customer directly via check or cash.