How long does a debit card refund take?

You’ve bought a gift for someone you care about, but it’s perhaps not the right size, or the recipient didn’t really like it.

Now it’s time to return it, but you’ve paid with a debit card.

So, how do you claim a refund, and how long does it take for the refund to appear on your debit card? 

Find out in this blog post!

How long does a refund take on a debit card?

Debit card refunds typically take a couple of days to process. In fact, the usual time frame is between 7 and 10 business days. In the best-case scenario, it could take up to 3 days, depending on your card provider and the merchant’s refund policy.

But why does your purchase go through immediately while the refund process takes longer?

The reason behind this is that it takes some time for the purchase amount to reflect in the merchant’s account, and it’s not always an instantaneous process, as it is with myPOS. Merchants need to confirm that the money is in their bank account before they can initiate your refund, which can take several days.

Businesses usually handle refunds via bank transfers. If you’ve paid in cash, you might receive cash, a gift card or even a credit note in return.

Why do some debit card refunds take a long time?

As mentioned above, some refunds can take longer due to the card provider or the merchant’s refund policy. However, additional factors can also contribute to the time it takes to receive a refund on a debit card. 

Here are the most common reasons for delays.

Processing and communication

When you initiate a refund, the merchant’s payment provider begins the process by communicating with your card issuer. This interaction, which can span several days, involves the exchange of information necessary to verify and authorise the refund.

Additionally, every bank and payment service provider adheres to its own set of internal procedures. These procedures may vary widely and can impact the time needed to credit the refund to your account. 

Merchant policies

Each merchant has different policies and procedures for processing refunds. Some businesses prefer to batch-process refunds on designated days rather than processing them immediately upon receiving the request. This approach allows merchants to streamline administrative tasks and manage refunds more efficiently.

Using an intermediary

If the initial debit card transaction included an intermediary payment processor, such as a payment gateway or third-party service, the refund process will require additional time. This is because the refund must pass through several entities, adding an extra layer to the processing timeline.

Fraud prevention checks

To prevent fraud, financial institutions and merchants may perform additional verifications and checks before processing a refund. These steps include confirming the transaction’s legitimacy and verifying the cardholder’s identity.

While necessary for security, these checks can delay the return of your money by adding extra processing time.

Weekends and bank holidays

Refund processing times are typically measured in business days. If a refund request is submitted during a weekend or public holiday, these non-business days can add extra delays to the refund process, postponing the time it takes for you to get the refund receipt.

International transactions

If the purchase was made with a merchant from abroad, the refund process might take longer due to the additional time required for international banking transactions. 

Factors such as currency conversion and differing banking regulations can all contribute to delays. Additionally, international transactions may require extra verification steps.

While some refunds can be processed quickly, understanding these factors can help explain why others may take longer and give you peace of mind that it is normal.

Can a refund be made to a cancelled debit card?

If you want to claim a refund but the debit card you used for the purchase has been cancelled, you might wonder how you can get your money back. Don’t worry. A refund can be processed to a cancelled card, though the procedure may vary depending on your payment provider and the reason for the cancellation.

If your Mastercard or Visa card was cancelled and replaced with a new one linked to the same bank account, the refund will typically be automatically transferred to your new card. This is because the refund is associated with your account, not the specific card number.

Even if there is no replacement card, the refund will usually be credited directly to the account associated with the cancelled card. A refund receipt showing the card matches your account will help track the transaction.

In some cases, you might need to contact your card issuer to facilitate the refund process. They will provide you with the necessary instructions and support. If you’re facing issues with a refund to a cancelled card, contacting your payment provider is the best course of action.

In addition, keep in mind that the merchant’s refund policy might require additional steps, so it’s advisable to check with them as well.

Fraud vs. refunds

You should also be aware of the difference between regular refunds and fraud-related refunds.

With cases related to fraud, this means you do not know or have not authorised the person in question to use your card.

If a purchase was made fraudulently, this subsequently means that your payment provider will offer you some form of compensation, depending on the amount involved and the policies of your financial institution.

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How to protect your debit card from fraudulent transactions

Protecting yourself from fraudulent transactions is crucial for safeguarding your finances. You can never be too cautious when it comes to sensitive data. 

So, here are some of our tips to help you keep your funds secure:

• Enable notifications: Set up alerts for every transaction on your account. This will allow you to track your account activity in real-time and quickly identify any unauthorised transactions.
• Keep your PIN confidential: Do not share your PIN with anyone, and avoid writing it down. When entering it at an ATM or a card machine, shield the keypad to prevent others from seeing it.
• Use strong passwords: Ensure the password for accessing your online account is strong and unique. Avoid using easily guessable passwords, such as your birthdate.
• Use multi-factor authentication: Enable 2-step online banking and financial account verification. This provides an extra layer of security by requiring two or more verification methods, such as a password and a code sent to your phone.
• Keep an eye on your funds: Frequently review your statements and account activity online. If you spot any suspicious activity, report it immediately to your payment provider.
• Beware of phishing scams: Be vigilant about emails, texts or phone calls that ask for your card information or personal details. Avoid clicking on suspicious links or downloading attachments. Banks will never request such information through these channels.
• Be cautious online:  Only shop on secure websites and ensure your computer and mobile devices have up-to-date antivirus software.

By following these tips, you can reduce the risk of having your debit card information stolen and becoming a victim of fraud.

Conclusion

Refunds are an important and necessary part of shopping. They ensure that you can get your money back if the recipient of a purchased product is not satisfied with it or for any other reason.

However, if you’re paying by debit card, you should be aware that refunds can take up to 10 business days to process.

If it takes longer than these 10 business days, you should consider calling your bank or financial institution for more information and assistance.

Learn more about card payments and card machines

• PDQ machines: What are they?
• Why your contactless payments might not be working
• How do Chip and PIN machines work?
• How is a credit card payment actually processed?