How does a refund work on a credit card?

How does a refund work on a credit card?

When you made the reservation for your accommodation with your credit card, it is initially your credit card issuer that paid for the reservation.
The available credit on your account drops after your credit card issuer approves the transaction.
Later, you pay them back this credit for the reservation when you pay off the balance on your credit card (usually through a monthly billing cycle). 

When we refund the deposit of your reservation to your credit card, we process the transaction again through the credit card issuer. So they receive the refund of the deposit first.
How and when the credit card company transfers the amount to your bank account depends on a number of factors:
  1. the speed of transactions between our bank and the bank of the issuer of your credit card.
  2. the timing of the refund in your credit card company's billing cycles.

How will a refund appear on a credit card?

It can be difficult to have a clear record of payments and refunds on credit cards.

Depending on the situation, our refund of your security deposit may appear in different places on your account statements.
If there was still an available balance on the credit card, the refund may appear as a credit payment on your account and reduce the total unpaid credit balance.

  1. the security deposit refund may appear on your statement next to the original reservation payment date.
  2. the refund of the deposit may appear on your statement next to the date the refund was received.
  3. the refund may also appear on your statement as a negative balance.

In the latter case, if the refund of the security deposit was not processed before the closing date of your credit card, it will not appear on that month's statement. If you paid off the entire balance of your credit card before receiving the refund of the security deposit, this statement will appear on your credit card as a negative balance. Now the credit provider owes you this amount. Don't worry, you can continue to use the card and have your payments for future purchases reduced by the balance. Contact your bank if you have any questions about this.

What if you really don't find the refund of the deposit on your credit card statement? 

Contact us and we will provide you with a proof of payment. This document contains a 23-digit Acquirer Reference Numbers (ARN).
A specific ARN-code is associated with any online debit and credit card transaction between a merchant's bank (the acquiring bank) and a cardholder's bank (the issuing bank).

Once a transaction occurs, an ARN code is always created between our bank and your credit card issuer's bank (your bank). There can never be an ARN code without a transaction. 

Neither we nor our bank can verify the arrival of a transaction in your bank account.
We can only validate that the transaction was carried out from our side using the ARN code.

Should your bank indicate they cannot track a transaction using the ARN code, we recommend two things:
  1. either your bank contacts VISA/MASTERCARD directly
  2. or you contact VISA/MASTERCARD directly
It is important to look up the transaction based on the ARN code and not just by consulting the credit card history or statements.
If VISA/MASTERCARD confirms in writing that a transaction cannot be traced based on the ARN code, please let us know.



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