Closed your credit card but still receiving refund emails? Here’s what to do | Mint

Many credit card users across the country have reported that they continuously receive emails regarding credit balance refunds long after their credit card accounts have been officially closed.

These mails and messages can cause confusion, doubts and speculations especially when credit card users are unsure about the final status of their outstanding balances or their refunds.

Such a situation generally arises because the refund process is ongoing or the accounts final settlement is not yet complete. It is important to take into consideration that even after a credit card is closed any pending refunds or dues such as those from returned purchases or previously failed transactions are still processed and credited back to the original account.

How credit card refunds work after card closure

When a credit card holder’s card is closed upon request, the account itself may still remain accessible to the customers card issuing financial institution for a brief period to to basically facilitate the settlement of all pending transactions including refunds.

Now in case a refund is processed after the closure it is still credited to the closed account. This can result in a negative balance which the bank or financial institution is obligated to return to the credit card customer.

In such cases customers may receive notifications on their registered email address or mobile number about the refund even though the credit card is no longer active. The banking institution is mandated to transfer this refund to the customer’s registered bank account upon request generally within a few working days.

What to do if you receive a refund notification

If you receive an email or text message notification about a credit balance refund even after closing your credit card then it becomes imperative to take the following steps:

1. Verify the notification carefully, check the complete details of the email or message to confirm it is from your respective bank and do ensure that it is not a phishing attempt.
2. Contact your financial institution, it is important to reach out to your credit card issuer’s customer care to talk to them and inquire about the status of the refund and confirm that your account is closed.
3. Now if a refund is credited to your closed account, then in such a case you should explicitly request the bank to transfer the amount to your bank account. The RBI’s latest guidelines mandate that banks must process such requests within a few working days.
4. Do ensure that you also retain all communication, emails, digital copies or any hard copy along with receipts related to the refund or credit card chargeback and closure for future reference.
5. If doubts still remain then discuss your queries with the respective customer service team of your credit card issuing financial institution. This will help you in attaining complete clarity on the entire procedure of applying for and receiving your credit balance refund.

Therefore, taking care of your closed credit card accounts and any pending transactions is an important point that you should never overlook. Now banks are also required to seek explicit consent from customers before adjusting refunds to closed accounts.

Furthermore, the banks must promptly transfer any refund to the customers bank account upon request. These measures help in ensuring greater accountability and transparency along with faster resolution for customers who close their credit cards but still have pending refunds.

Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit, as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.