No Airbnb refund after I closed my bank account. Now what?

Airbnb promises Bart Colen’s a refund after his host cancels his rental at the last minute. But months later, the money is still missing. Why? Colen closed his bank account. What can you do if you’re getting no Airbnb refund?

Question

I made a reservation on Airbnb last year for a three-month trip to France this winter. My host canceled at the last minute, and Airbnb agreed to refund me $728. 

I have not received the money yet. The reason: I closed the bank account to which my Airbnb account was attached. Airbnb won’t send the money to my new account.

I forwarded a letter from Chase Bank, showing that the old account had been closed months ago and could therefore not have a payment processed to it. I have called and emailed them several times, and I’ve even contacted the BBB — no avail.

Airbnb is sitting on my money and claiming that it is the responsibility of me or Chase to put it right, even though Chase cannot reactivate an account that has been closed for so many months.

I want Airbnb to pay me money however they can, either by check or by direct payment to my bank account. Can you help me get my $728 back? — Bart Colen, Pingree Grove, Ill.

Answer

Airbnb should have refunded you a long time ago. Why didn’t it? 

Airbnb’s policy is to refund your money to your original payment method. So if you used a credit card, it would go back to that card. And the reason for that is simple: It’s safer and easier than trying to chase down a new payment method or writing a check. (Related: I’ve been banned by Airbnb, but no one will tell me why.)

But Airbnb also claims it will accommodate you if you switch accounts.

“If your original payment method’s account was closed, the refund sent by Airbnb won’t process,” it says on its site. “If this happens, you can contact Airbnb to step in and help.”

It looks like Airbnb didn’t step in to help.

Listen to this story

This is common. From what I can tell, refunds will automatically go back to the original form of payment. Often, even employees have a hard time reversing the transaction. And who knows where your money went? Your bank may have it somewhere. Airbnb might still have it. It’s a real mystery.

(As a side note, I’ve always wanted to do an investigative story that traces a refund like yours. Is there some kind of slush fund the company has where all the missing refund money goes? Now that would be a story.)

If you close your account, can you still get a refund?

If a merchant refuses to refund your credit card after you’ve closed your account, it can feel like hitting a brick wall. But there are steps you can take to navigate this frustrating situation and potentially reclaim your hard-earned money. (Related: Locked out of your Airbnb? Here’s how to get back in.)

Contact the merchant first

Before you do anything else, give the merchant a chance to fix it. Explain your situation clearly and ask for a refund. Be polite but firm in your request. Provide any relevant details, such as order numbers or transaction dates. Sometimes, a simple conversation can resolve the issue.

Check your rights

Can a company take your money and not return it because of a policy? Of course not. Fortunately, you have laws that can protect you, including the Fair Credit Billing Act in the U.S. and Section 75 in the UK. Get familiar with your consumer rights and don’t be afraid to invoke them. (Here’s our complete guide to credit card chargebacks.)

Keep meticulous records

Phone calls won’t cut it. You need detailed records of all communications with the merchant and your credit card company. This includes emails, phone call logs, and any receipts related to your purchase. This documentation is often critically important to supporting your case if you need to escalate the matter. (Related: Airbnb lost my reservation and then banned me.)

Escalate to an executive

I list the names, numbers and email addresses of the company executives on this site. Send a brief, polite email using our proven methods. (Here’s our guide to resolving your consumer problem.)

Try the nuclear option

If the merchant won’t listen to reason, contact your credit card company to initiate a chargeback. That allows you to dispute the charge and request that your bank reverse the transaction. You’ll have to send written evidence of your attempts to resolve the issue with the merchant. But before you do, make sure

The best way to avoid this? Don’t close your account until you’ve accounted for every refund. There’s no good way of preventing the confusion that results from a refund being sent to a closed account.

How to fix your Airbnb refund problem after you closed your account

I’m sure Airbnb means well by its promise to “step in and help,” but my experience tells me that even companies with sophisticated payment systems have difficulty with this. And once they lose track of the money — you’re absolutely right, it becomes your problem. Which is profoundly unfair.

The fix: You can escalate this problem to a manager at Airbnb. I list the names, numbers and email addresses of the Airbnb execs on this site.

I contacted Airbnb on your behalf. A few weeks later, you came back with good news. “At long last, I got my refund from Airbnb,” you said. Airbnb never told me what happened to your money or where it went, but at least it found its way back to you.