Refund went to different bank

RG2015

I recently made a credit card payment to RAC insurance for an amendment to my car insurance policy. However they overstated the addition premium and had to make a refund.

They made the refund, but credited my default credit card account not the one I made the payment from.

Is this likey to cause any problems, particularly since both cards have rewards, one at 1% and the other at 0.25%?

retiredbanker1

No - it is you who tells the insurance company which card is your default.

Do you get cashback on a credit refund?

RG2015

Thanks for the reply.

By default I mean it is the card I used for the annual premium paid in January 2024. They subsequently used it for my renewal in January 2025. I see now it is shown in my online record as my default payment method.

When I changed my car last week they gave me a premium adjustment and I paid this using a different credit card. It then transpired that they had overstated my premium adjustment and they credited the card held on their files.

I had fully expected them to credit the card used for last week's payment.

I won't get cashback on the refund but I would expect that my cashback will be deducted from the bank from which the refund was taken.

retiredbanker1

I don't think that they will unless they completely refund the original payment and then deduct the correct amount.

ZeroSum

RG2015 said:

Thanks for the reply.

By default I mean it is the card I used for the annual premium paid in January 2024. They subsequently used it for my renewal in January 2025. I see now it is shown in my online record as my default payment method.

When I changed my car last week they gave me a premium adjustment and I paid this using a different credit card. It then transpired that they had overstated my premium adjustment and they credited the card held on their files.

I had fully expected them to credit the card used for last week's payment.

I won't get cashback on the refund but I would expect that my cashback will be deducted from the bank from which the refund was taken.

I had something similar where I mixed up 2 cards, and I didn't suffer negative cashback but that was related to a specific % at a specific retailer. Had it been my barclaycard reward card, then I probably would've done as it does happen with refunds