How do refunds work on expired debit or credit cards?

[OPUSTeam]

We are trying to clarify a unique situation we have with refunds.

For purchases using a card (debit or credit) Shopify only allows refunds back to the original card used for purchase aka the card on file. What happens if that original card used for purchase has since expired/become invalid since the customer made the purchase and then requests a refund? The most common scenario we are facing is that the original payment card has expired and the customer has received a new card (with new numbers) but the bank account associated with the old card is the same bank account associate with the new card. So the customers bank account has stayed the same, but the card number associated with that bank account is now different from what we have on file. Since we can only refund back to the original card used for purchase, we would be refunding to an expired card. Will the customer still receive these funds since the bank account is still the same? What are our options when this happens? 

[Victor · Accepted solution]

Hi @OPUSTeam,

This is something that will be determined by the customer's bank. In most cases, I believe the bank would have the funds deposited automatically to the account linked to the new credit or debit card, and all you would need to do is refund the order as standard via the Shopify admin. 

This process is outlined in the Shopify Payments FAQ:

If the card that you have refunded is expired or canceled, the customer's new card is credited with the refund. In the rare case that the customer doesn't have a new card, the bank usually sends the refund to the customer's bank account.

Ultimately, in order to be sure that the funds will be received, your customer will need to speak with their bank and confirm that the funds will be deposited into their account even if the money is sent back to the expired card used at the time of purchase. They should be able to confirm this and once they have done so, you can issue the refund.