There are several reasons why a refund transaction may fail on the same card used for the original payment. These are mostly bank-related issues. These reasons include the following:
- An expired card.
- Closed or inactive account.
- Merchant restrictions.
- Prepaid cards.
- Technical issues.
Refunds must go back to the card used for the original transaction. You cannot refund to a different credit card. There are instances when a closed account is no longer active and the credit card company cannot accept merchant refunds due to certain limitations.
Hard declines are unable to be resolved with the original card. An alternative payment method is recommended if a refund transaction cannot be processed. Although an alternate is not ideal, it helps avoid a potential dispute.