Cannot receive refund because of cancelled credit card

Answered!
Ramtin4
Level 2
Mountain View, CA

Cannot receive refund because of cancelled credit card

On June 28 my Airbnb reservation was cancelled by the host. Airbnb informed me that a refund of $1,350.24 was sent to the Chase Visa credit card that I used to pay for the reservation. I called Airbnb and informed them that I had cancelled the card 6 months earlier in January, but Airbnb told me that there was a standard process through which the bank would receive the money in 3-5 business days and send me a check.

 

On July 3, I called the Chase Bank. The bank informed me that they rejected the refund because I didn't have an account with them and there were no longer any profiles associated with me in their system. They strongly suggested that I reach out to the "Merchant Services" department at Airbnb because they were able to confirm that the bank had declined to receive the refund sent by Airbnb.

 

I submitted a help ticket on airbnb.com. When I didn't receive any response from them, I called their customer service and after speaking to their customer service for 1.5 hours, I was told that they confirmed with their team that the bank received the funds and gave me an ARN number to provide to the bank to claim my refund.

 

When I called Chase, because I didn't have a profile with them, their customer service could not submit a ticket for me or provide any further assistance. After several follow ups and spending many hours talking to many different customer service representatives (this process took weeks), I was instructed to send a fax to the Correspondence team and Executive team at Chase Bank which I did.

 

After weeks, I received the following response in mail from Chase:

 

"We were unable to locate an account for you, and the funds were returned to the merchant bank on July 17, 2020. This is done whenever we receive a credit and no matching account is found. We ask that you please contact the merchant to resolve the matter. The merchant will need to contact their bank to locate the funds and then issue a refund check to you. Here's the contact information for the merchant and the reference number associated with the credit:

AIRBNB**
..."

 

On Aug 12, I submitted a help ticket on airbnb.com and let them know about the response I received from the bank. I haven't received a response from Airbnb. I have submitted two more tickets since then but I haven't received any responses, except the following message from their Helpbot:

 

"It looks like you already wrote to us about this issue, so we've combined this message with your other message.
This message thread is now closed, but you can continue the conversation here: ..."

 

When I call Airbnb customer service, a recorded message says that they can only provide assistance for trips that are less than 72 hours away. I have drained many hours in the past few months to receive my refund, but Airbnb hasn't provided any answers, updates, or assistance.

**[Sensitive information removed in line with - Community Center Guidelines]

1 Best Answer
Linda108
Level 10
La Quinta, CA

@Ramtin4   I am so sorry you are experiencing this refund problem.  While this problem would happen with any refund attempt on a cancelled card, I am afraid you will have to have extra patience with Air BNB.  Don't waste too much more time in sending more messages.  Many hosts, myself included, have seen issues taking 4-5 months to resolve.  I know that doesn't help with your frustration but perhaps it helps with perspective.

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14 Replies 14
Linda108
Level 10
La Quinta, CA

@Ramtin4   I am so sorry you are experiencing this refund problem.  While this problem would happen with any refund attempt on a cancelled card, I am afraid you will have to have extra patience with Air BNB.  Don't waste too much more time in sending more messages.  Many hosts, myself included, have seen issues taking 4-5 months to resolve.  I know that doesn't help with your frustration but perhaps it helps with perspective.

This is helpful, thank you very much! I think I can wait a couple of more months. I wish Airbnb would confirm that they will take care of it at some point. If there is anything else that I need to do (like inform my host?), I'd appreciate it if you can let me know.

Informing the host would be good. If you think there might be a time when you would book in the future, perhaps the host would be open to giving you a credit instead of your going for a refund.  Might be worth communicating about.

Thank you!

Lisa723
Level 10
Quilcene, WA

@Ramtin4 maybe try reaching Airbnb on facebook and twitter. Some people report getting results that way. Small claims court is also an option.

Alfonso330
Level 2
Guadalajara, Mexico

Did you solve the problem? I am having the same issue. Thanks!

It took me 2 month to get my money back. Keep calling them and follow up. For the first few weeks my case was in the wrong department and after 10 calls they transferred it to the right department  !! 🤬

Was your issue solved? I’m having the same problem now and keep having to re-explain the issue to Airbnb, wait for a return on messages etc. it’s been over two months now.

Yes, my issue was solved but it took me more than 2-3 month and 100 hours of time that was spent on the phone. they have the worst costumer service and it's really hard to contact them. keep Following up , don't wait for them to solve the issue. 

@Ramtin4 Thanks! I’ve just hit 3 months now. The problem is they keep saying that they are transferring my issue to someone better equiped to handle it and then I never hear from anyone. I make a phone call, reexplain and the process begins again only for my issue to never be dealt with. They closed my initial support request because I could not get them the documents from the bank within 24hrs…it was my wedding day. 
Absolutely appalling service. 

Mike-And-Jane0
Level 10
England, United Kingdom

@Lauren3158 Have you tried messaging them on twitter? They typically don't like bad publicity

Debra300
Level 10
Gros Islet, Saint Lucia

I know this thread started a couple of years ago, but it appears that the learning lesson is to use PayPal, if possible.  Since PayPal is now considered a bank, the refund would have been deposited to the banking account had the credit card that was used for the payment via PayPal been closed.

Mike-And-Jane0
Level 10
England, United Kingdom

@Debra300 In the UK (may be similar elsewhere) you get additional protection against fraud if you use a credit card. In simple terms (detail may be wrong) the credit card company is jointly  liable if the product/service is not delivered. Use of an intermediary such as Paypal removes this protection even if the credit card is linked to Paypal.

@Mike-And-Jane0 ,

 

Yep, different countries have varying policies regarding payment processing.  In the US PayPal offers these anti-fraud services to customers:

  • The PayPal Purchase Protection policy ensures that users are reimbursed in full, including shipping costs, if a product purchased online using PayPal arrives and is "significantly different from its description." It doesn't cover absolutely all purchases, but if you order a wedding gown and get a dishrag, you're covered.11
  • If an order paid using PayPal doesn't arrive, you can report it and get a refund.
  • If an unauthorized purchase is made on your account, you're not liable for it if it is reported within 60 days.

Also, if a credit is used via PayPal, the purchase is still eligible for any extended warranty protection that the card may offer.