How long does a refund take? Debit & credit card guide | Dojo

Making purchases with your debit or credit card has never been easier with contactless payments and digital wallets. However, the easier it is to purchase and spend, the more likely refunds are to take place.

Refunds are a very normal part of business, especially in retail, so it's useful to understand what happens when a customer returns an item and requests a refund to the card they purchased with. We'll explain how long refunds typically take to process for debit and credit cards work, so you can better answer any customer queries. 

Understanding refunds

What does a refund mean?

The meaning of a refund is quite simply to be paid back. This usually refers to the return of goods or services that were unsatisfactory, damaged or when the customer isn’t satisfied. A refund is the reimbursement of the price paid, typically back to the original payment method. For example, if a customer purchases via cash, their refund will be in cash, unless otherwise specified or agreed.

In some cases a customer may receive a partial refund. This can often happen when a customer has used a service to some extent but is dissatisfied.

How long does a credit card refund take?

A refund on a credit card in the UK usually takes between three and seven business days, but this can be longer depending on the merchant and credit card company. Credit card refunds often take slightly longer than debit due to the merchant having to send back the funds to the credit card issuer who then credits your account.

How long does a debit card refund take?

Refunds to debit cards are usually quicker than credit card refunds, often appearing within three to five working days. However, depending on the customer’s bank, it can sometimes take up to ten days for the funds to fully clear. That’s because banks process refunds through a network that involves several verification steps to ensure security. If a customer is waiting longer than expected, it’s usually best for them to check directly with their bank to confirm processing timelines.

Why refunds can take longer

While most refunds are processed quickly, there are a few reasons why delays can happen. Public holidays and weekends can slow down processing, as payments aren’t usually cleared on non-working days.

Refunds may also take longer if:

• The refund was issued after the card statement was generated.
• The purchase involved foreign currency conversion or international payment networks.
• The business uses different acquirers or payment processors for refunds versus sales.
• There’s a system error or verification issue that needs manual review.

How refunds work behind the scenes

When a refund is issued, it follows a similar journey to the original purchase, but in reverse. The merchant’s payment provider sends the refund request to the customer’s bank or card issuer, which then processes the funds back to the customer’s account. The process can involve multiple intermediaries, especially for international transactions, which is why some refunds take longer than others.

For example, if a customer used a credit card, the funds are returned to the card issuer first before being credited to the customer’s account. In contrast, debit card refunds typically move straight from the merchant’s bank to the customer’s account, making them faster on average.

How to handle refund queries

Customers often reach out when they haven’t seen the money back in their account right away. Having clear, confident communication can help avoid frustration. Be transparent about your refund policy and typical timelines, and let customers know that some banks take longer than others to process transactions.

If you’ve issued the refund already, providing proof such as a transaction ID or refund receipt helps reassure customers that it’s being processed. You can also suggest they check their pending transactions or statement for recent updates, as refunds sometimes appear as credits rather than new entries.

Best practices for small businesses

• Automate where possible: Use your point-of-sale or payments system to issue refunds digitally. This ensures accuracy and faster processing.
• Train your staff: Make sure your team understands refund policies, timelines, and how to explain them clearly to customers.
• Keep records: Maintain a clear record of refunds issued, including date, amount, and payment method, in case any disputes arise.
• Be proactive: If a delay occurs, contact the customer before they need to chase. This helps build trust and shows your business values transparency.

Chargebacks vs refunds: what’s the difference?

It’s easy to confuse refunds with chargebacks, but they’re not the same thing. A refund is initiated by the business to return money voluntarily, usually after a customer request. A chargeback, however, is when the customer’s bank reverses a transaction after they dispute it, often due to fraud or a failed refund request.

Chargebacks can be more complex for merchants to manage and may incur fees, so resolving refund issues quickly is always best. Having a clear refund policy and communicating openly with customers helps reduce the chances of disputes turning into chargebacks.

Keeping your customers reassured

Refunds can sometimes test a customer’s patience, but they also present an opportunity to reinforce trust. A smooth, transparent refund experience shows that your business values fairness and reliability. Consider following up with a friendly message once the refund is processed – it’s a simple touch that can help turn a potentially negative experience into a positive one.

Clear communication, fair policies, and reliable payment systems all help create confidence that, even when things go wrong, your business handles them right.