What Happens to Successful Chargebacks to Closed Credit Cards?

TLDR

I just got a msg from aliexpress saying that my chargeback from 2017!! has been approved

"AliExpress has processed your chargeback order No.XXXX. The seller has taken responsibility, so you will get your payment refunded. The order has been closed in accordance with our chargeback rules."

I only vaguely remember doing it,

however its a CBA Master card, thats been closed

what happens to this refund if comes through?

the amoount is $200

Comments

  • +6 votes

    The account probably goes into Credit, CBA will see the account is closed and you would need to make contact with them to transfer into a preferred account.

    (Ofcourse you can call them to find out for certain)

    •  

      so there is no chance that ali express will receive a "could not find card" or "funds being returned to you"
      type of out come?

  •  

    I had a refund on a Diners (yes!) Which was cancelled ages ago. They sent me months of statements with a small credit. Eventually cut me a cheque after a few years.

    I did try to fax them a release to say donate it to charity or add to a negative account.

  •  

    I recently had a company offer me a refund to a closed credit card. I went in to the bank branch (Westpac) and they basically said that it has no where to go, so would likely just bounce back to the company. They said there would be a small chance it would come through, but they didn’t expect it to.

    As a result, after weeks of convincing them not to refund to the car, I managed to get the company to refund me via PayPal, so I have no idea what was going to happen had they tried the refund. But the branch basically did not have any belief it would work.

    • +7 votes

      To be fair, Westpac is Australia's oldest bank and I'm pretty sure they're still using their original accounting system so not surprising they wouldn't be able to handle such an issue.

  •  

    Contact the issuer of the card, they will have your money, they will probably send it to you as a cheque.

  •  

    This happened to me with AMEX and they sent me a new statement with the account in credit. I just gave them a ring and they transferred the credit into my bank account

  •  

    just spoke with CBA

    apparently there is no way the funds will be sent back

    apparently it gets credited to the account and then after it s cleared I have to go into a branch to arrange a transfer to another account,

    but it looks like that I have to call up weekly to see if the refund has come through

  •  

    I used to work at a bank and see this a bit. For quite a while after an account is closed, the card number will still accept a refund. The refund will go back to the account and will be dealt with depending on the procedures of the bank. ie. (a) Sit there until the customer contacts them (b) Generate a statement that is in credit that will get sent to the customer (c) A cheque will be sent out to the customer etc.

    However, after a certain time, the card will no longer accept refunds. How long this is was not very clear and it seemed to vary and I didn't fully understand it, but from memory, it was around 9 months. It may also depend on the merchant's bank. I remember phone calls where merchants were getting an error trying to refund to an old closed card.

    •  

      well to be honest, im quite annoyed,

      after being reassured that the funds would never bounce back and I was safe, after specifically asking the question directly, and call back every few days to check if a refund had been applied to my account,

      I called up and got a cocky staff member who proceeded to tell me everything the prevuous staff member had told me was incorrect,

      and that they cant even see my card anymore, so all refunds will bounce back,

      I demanded a supervisor who said the same thing,

      ironic how they said they couldnt even see my card, but asked for my last 4 digits to confirm anyway

      so ive raised a complaint with them and if im not happy, ill go to the ombudsman

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