Canceling a Trip Due to Coronavirus? Rules May Not Be Clear
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What is the main topic discussed in this episode?
Here's your money briefing. I'm J.R. Whalen for The Wall Street Journal.
How has the coronavirus outbreak disrupted travel and events for consumers?
The coronavirus outbreak has disrupted all areas of the travel and events industries, affecting everything from business travel to concerts to family vacations. And as airlines cut back on service and health officials recommend we stay home, many Americans are seeking refunds through their credit card companies. It turns out it's not so easy.
When they found that they couldn't really make headway with the credit card companies, they reached out directly to the airlines and the different providers they used to book their travel to try to get refunds that way. And they were met with mixed success.
Why are consumers turning to credit-card companies for refunds after cancellations?
That's Wall Street Journal reporter Anna Maria Andriotis. Coming up, she'll explain how consumers should negotiate with their credit card company and whether it's easier to have your points refunded versus money.
For many Americans, that spring vacation they booked months ago with a credit card has been wiped off the calendar as a result of the coronavirus outbreak. Getting a refund can be tricky since many credit card companies and airlines have announced various sets of rules when it comes to cancellation due to the outbreak. Wall Street Journal reporter Anna Maria Andriotis is with us to discuss. So, Anna Maria, how flexible are the credit card companies during this crisis?
So part of the complication here is that when people are calling to ask them to ask the credit card companies for refunds, many people are trying to use a benefit that exists on some credit cards called travel insurance. And that benefit, unfortunately, is not kicking in for coronavirus unless the individuals themselves have been infected or have been placed under some type of quarantine by a physician.
But this is an evolving event. The safety recommendations and the travel restrictions, you know, they seem to change daily. Wouldn't the credit card companies, in an effort to preserve their relationship with their customers, want to do the right thing?
I believe so.
When does travel insurance on credit cards cover coronavirus cancellations?
And days ago, there were individuals who were not getting refunded and who got refunded shortly before we published our article. In my conversations with consumers, there was already this sort of tone of, you know, I have this expensive credit card with a $400 or more annual fee.
What alternative strategies are people using when credit-card refunds are denied?
I expected more from this. You know, these companies sort of talk about their customer service and they expected more from that. So there definitely is that thought process playing out right now. consumers need to consider the different routes they can take here. So I talked about people contacting their credit card companies when they found that they couldn't really make headway with the credit card companies. They reached out directly to the airlines and the different providers they use to book their travel to try to get refunds that way.
Are points easier to recover than cash when trips are canceled?
And they were met with mixed success. So it's important at this stage to try every company involved with your travel booking, be it your credit card company for the card that you use to book your travel with, as well as of course the airlines, the cruise lines, the travel agencies that were used. What's interesting is that credit card holders who feel frustrated when they hear that the insurance benefit is not something that kicks in here, They've been trying an interesting route. What some of the people I've spoken with are doing, and the banks have also mentioned they've been getting this sort of request, is that people have been submitting essentially merchant disputes. It's the sort of thing that has really been reserved for cases in which people find that somebody made a fraudulent purchase with their card.
You open up your credit card bill, you see somebody bought expensive electronics with your card, that wasn't you, and then you go through this dispute process where you're no longer liable, you're no longer responsible for having to pay that item that you actually didn't buy. Well now, cardholders are taking this path, though it was a legitimate purchase that they made with their card,
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Chapters
7 chapters
1
What is the main topic discussed in this episode?
0:05–0:08
2
How has the coronavirus outbreak disrupted travel and events for consumers?
0:08–0:45
3
Why are consumers turning to credit-card companies for refunds after cancellations?
0:45–2:10
4
When does travel insurance on credit cards cover coronavirus cancellations?
2:10–2:30
5
What alternative strategies are people using when credit-card refunds are denied?
2:30–3:02
6
Are points easier to recover than cash when trips are canceled?
3:02–4:24
7
How should consumers navigate disputes with airlines, merchants, and card issuers?
4:24–7:24
Speakers
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