When a flight goes wrong, airlines often offer a travel credit first. Sometimes that is all you are entitled to. Often it is not, and accepting it can mean giving up money you were owed. Here is how to tell the difference.
The difference
- A cash refund goes back to your original form of payment: your card, bank account or whatever you paid with. You can spend it anywhere.
- A travel credit or voucher can only be used with that airline, usually before an expiry date, often only by the person named on it, and sometimes with other restrictions.
When you are entitled to cash
- The airline cancelled your flight, and you choose not to travel.
- The airline significantly changed or delayed it, including a delay of three hours or more on a domestic flight or six on an international one, and you choose not to travel.
- You paid for extras you did not receive, such as seat selection or Wi-Fi.
- You bought a refundable ticket.
- You cancelled within 24 hours of booking, on a booking made at least seven days before departure. US airlines must either let you cancel without penalty in that window or hold the fare for you.
In the first three cases, you do not have to accept a credit. See the DOT refund rule.
When a credit is usually all you get
- You cancel a non-refundable ticket yourself because your plans change. The fare rules decide what you get back, usually a credit, sometimes nothing on basic economy fares.
- Goodwill gestures after a delay. These are optional, and usually given as miles or vouchers. See flight delay compensation in the US.
- Voluntary bumping, where you agree to give up your seat in exchange for a voucher. See bumped from a flight.
How airlines blur the line
When a flight is cancelled, the airline's app or website may lead with "keep your money as a travel credit" and put the refund option further down. Look for the refund option before you tap anything, and if you speak to an agent, be explicit:
"I won't be traveling, so I'd like a refund to my original form of payment, not a travel credit."
If you have already accepted a credit by mistake for a flight the airline cancelled, ask the airline to convert it into a refund. Some will.
When a credit can make sense
- You will definitely fly with that airline before the credit expires.
- The airline offers a credit worth noticeably more than the refund.
- You are being offered a credit on top of what you are owed, not instead of it.
Before you accept one, check
- The value, and whether it covers taxes and fees.
- The expiry date, and whether you must book or fly by then.
- Who can use it, and whether it can be used for someone else.
- Whether it can be used online or only by phone.
If a refund you are owed does not arrive
Follow up with the airline in writing, then file a complaint. See how to file a complaint with the DOT. If you paid by credit card, you can also dispute the charge with your card issuer.
Deciding whether to take the refund at all? See refund or rebooking: which to choose.
This guide is general information for US travelers, not legal advice. Rules and airline commitments change; check with your airline or the US Department of Transportation for your specific situation.