Finance glossary
Refund
In simple terms
A refund is money returned to your card or account — for example when you return goods, cancel a service, or a payment is reversed.
On this page
What does refund mean?
A refund is the return of money you paid, credited back to the card or account you used. It can follow returning an item, cancelling within your rights, an overcharge, or a successful dispute.
A refund to a card usually goes back to the same card, not as cash.
How refunds work
The retailer or provider processes the refund, which then takes time to appear on your statement — often a few working days. If a card has since expired or been replaced, the refund normally still reaches your account.
Where a seller refuses a refund you are entitled to, you may be able to use chargeback or, for credit-card purchases over £100, Section 75.
How could this affect me?
Knowing your refund rights helps you push back when a seller resists. Under the Consumer Rights Act 2015, faulty goods can entitle you to a refund, and there are cancellation rights for many online purchases.
Keep proof of purchase and any cancellation, in case you need to escalate.
Things to watch out for
- Refunds can take several working days to show on your statement.
- Refunds usually go back to the original card, not as cash.
- A seller refusing a valid refund may be challenged via chargeback or Section 75.
Know your rights
- The Consumer Rights Act 2015 gives refund rights for faulty goods and services, and there are cancellation rights for many distance (online) purchases.
- For disputes you may use chargeback (a card-scheme process) or Section 75 on credit-card purchases over £100; complaints can go to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- legislation.gov.uk, Consumer Rights Act 2015 (opens in a new tab). Accessed 22 Aug 2026.