A credit card refund is initiated by the merchant or vendor who received the original payment. A refund is issued when you return a purchased item or receive a discount, for instance. The refund amount is credited back to your credit card account, and it typically appears as a credit on your statement.

Under the "Passenger First" regulations of 2026, you are legally entitled to a full refund to your original payment card if the airline cancels your flight or if there is a significant delay (defined as 3+ hours for domestic and 6+ hours for international). Airlines can no longer force you to accept "travel vouchers" or credits for cancellations they initiate. If you booked via a credit card, the law mandates that the refund must be processed within 7 business days. If you choose to cancel a non-refundable ticket yourself, you generally won't get the base fare back, but you are still entitled to a refund of the government taxes and airport fees. To ensure a smooth process, always request the refund through the airline's official "Manage Booking" portal. If the airline refuses, you can initiate a chargeback with your bank, citing the 2026 consumer protection laws as evidence of your right to a cash refund.