How it works credit card refund? Does it take a long time? Learn all about it!

Here’s an example…

Imagine you bought a pair of sneakers online, but when the product arrived, you realized it was the wrong size or even had a visible defect. You then decide to return the item and contact the store to resolve the issue.

In this case, the store issues a refund: it cancels the charge made to your credit card and returns the amount to your credit limit, as if the purchase had never happened. In other words, if you paid R$ 300, that amount is returned to your card, freeing up the credit limit you used, and you don't have to worry about paying for a product you didn't receive correctly.

When is Chargeback Applicable?

There are several situations in which you can request a credit card refund. Here are the most common scenarios:

• Canceled purchases: If you decide to cancel a purchase, a refund is applied to return the amount charged. This is common for online purchases, hotel reservations, or airline tickets.
• Duplicate charges: Have you ever checked your invoice and noticed the same amount charged twice? When this happens, you can request a refund to correct the error.
• Fraud and unrecognized transactions: If you notice a purchase that wasn't made by you, you can treat it as fraud and request a refund immediately. This is a way to protect consumers against unauthorized transactions.
• Problems with the product or service (such as returns): If the product arrives defective, different from what was advertised, or if you return the item for any reason, the company must issue a refund, reversing the charge made to the card.

How Does the Credit Card Refund Process Work?

The credit card refund process involves several steps, which may vary depending on the situation and the store or financial institution's policies. Here's a simplified step-by-step guide to help you understand how it all works:

1. Refund request: The first step is to request a refund, which can be made by the customer (you) or by the merchant. If you've identified an improper charge, you should contact the store or card issuer to request a refund. In some cases, such as fraud, you can contact the bank directly.
2. Assessment by the merchant or financial institution: After receiving the request, the merchant or financial institution will review the order. They will check for valid reasons for the refund, such as purchase cancellation, billing error, or product return. This step may take a while, depending on internal policies.
3. Refund process: If the refund is approved, the amount will be returned to your credit card. However, this process isn't instantaneous and can take a few business days to complete. Refund times vary, but typically take between 7 and 10 business days.
4. How the amount appears on the invoice: When a refund is completed, it can appear on your statement in two ways: as a credit (a positive amount, increasing your limit) or as a reversal of the original charge (the amount of the canceled purchase is removed). In both cases, the effect is the same: you don't have to pay the refunded amount.

How long does it take for the refund to appear on the invoice?

The time it takes for the refund to appear on your credit card statement can vary greatly, but it is usually between 7 to 30 business daysThis time depends on several factors, such as the bank that issued your card and the administrator's policy.

Some institutions can process refunds within a few days, while others may take longer, especially if the request undergoes a more detailed review.

Additionally, if a refund is requested close to the closing date of the invoice, it may not appear until the next invoice. Therefore, it's always a good idea to track the status directly with your bank or check your statement online to ensure the refund was received correctly.

What to do if the refund does not appear?

If you've requested a refund and it hasn't appeared on your statement yet, don't despair. There are a few steps you can take to resolve the issue:

1. Contact the merchant: The first step is to contact the store where the purchase was made directly. Ask if the refund has been processed and request proof. In some cases, the merchant may have requested the refund, but it hasn't yet been finalized by the card issuer.
2. Talk to your credit card company: If the merchant has confirmed the refund request and the amount doesn't appear on your statement, the next step is to contact your card issuer. Report the situation and ask them to check the refund status. They can clarify whether the amount is pending processing or if there was a problem.
3. Open a dispute or chargeback: If the refund isn't processed and you can't resolve the issue directly with the merchant or carrier, you can file a dispute or challenge the charge with your bank. This means you're questioning the validity of the charge, and the bank will investigate the situation. During this process, the amount may be temporarily suspended from your statement while the review is conducted.

Can the Refund Happen Partially?

Yes, a refund doesn't always have to be for the full purchase amount—it can be partial. This is common in situations where only part of the order was returned or when a specific fee is charged.

For example, imagine you purchased three products from an online store but decided to return only one of them. In this case, the refund will only be for the value of the returned item, not the entire purchase.

Another situation in which a partial refund occurs is when there is a cancellation fee. Some services, such as airline tickets and hotel reservations, may charge a penalty or administrative fee. Therefore, you will receive a refund only for the remaining amount after this fee has been deducted.

In other words, a partial refund is a way to adjust the refund to what was actually returned or canceled, ensuring that you receive the correct amount.

How to Check if the Refund Has Been Made?

To find out if the refund was actually made, you can check your invoice in a few simple ways:

1. Online invoice or bank app: The most practical way is to access your statement through your bank or credit card app. There, you can see all transactions in real time, including refunds, which may appear as a credit (positive amount) or as a reversal of the original charge. Look for terms like "credit," "refund," or "reversal."
2. Checking the printed invoice: If you're still receiving a printed invoice, check the credits section. The refund is usually highlighted and identified as a positive amount, reducing the invoice total.
3. Contact the bank: If you haven't seen the refund on your statement, even after a few days of requesting it, it's worth contacting your bank or card issuer to confirm. They can inform you of the refund status and answer any questions.