Do refunds affect the spending required for a welcome bonus?

You might be curious about what happens if a payment made to qualify for a credit card welcome bonus gets refunded. This is a great question raised by one of our readers, Stephanie:

"I recently obtained the [Hilton Honors American Express Aspire Card] and needed to spend $4,000 to earn the 150,000 bonus Hilton Honors points.* I surpassed the $4,000 requirement in the first month alone, spending on flights, rental cars, and hotels for an upcoming trip in November. Unfortunately, the entire trip was canceled, and most of my spending was refunded. However, I had already received the Hilton bonus points, which were credited to my Hilton account. My question is: Was this an anomaly? I assume credit card companies typically retract points and require more spending…. If I had transferred the bonus points to a partner airline, would the credit card company be able to retrieve the miles from the airline?"

The information regarding the Hilton Honors American Express Aspire Card has been gathered independently by Dinogo. The card details on this page have not been reviewed or endorsed by the card issuer.

*This welcome offer is no longer available.

Do refunds affect the spending needed for a welcome bonus?

The good news is that most credit card issuers generally do not take back a welcome bonus once it has been granted, even if the purchases that qualified for it were refunded. However, American Express follows a different policy than most other major issuers.

I reached out to the major U.S. issuers to inquire about their policies on this matter, and here’s what each responded:

American Express

This reader's question specifically pertains to an American Express-issued Hilton credit card. According to Amex's terms and conditions, rewards will be revoked in the event of a refund.

Regrettably, this policy also applies to welcome bonuses. An Amex representative confirmed that if a refund is processed for purchases that contributed to reaching a welcome bonus spending goal, the bonus will be revoked unless you meet the spending requirement through additional purchases before the deadline.

Bank of America

Similar to most other issuers, Bank of America confirmed that your welcome bonus will not be taken away if you receive a refund for purchases that helped you achieve the bonus.

Chase

Chase confirmed that it does not revoke credit card welcome bonuses once they have been granted. Therefore, if you fulfill the spending requirements, receive the bonus, and later get a refund for purchases that contributed to meeting those requirements, you will retain your bonus.

Capital One

We contacted Capital One, but we did not get a response regarding its policy on welcome bonuses in the event of refunds.

Citi

Citi confirmed that if you have met the spending requirement and received your points before a refund processes, you will keep your welcome bonus.

However, the representative I spoke with emphasized that any refunds processed before you receive your bonus will be counted as deductions from your minimum spending requirement. Customers would need to make up for that spending to qualify for the welcome bonus.

Warning: Avoid Misusing These Policies

While this information is encouraging (except for Amex), be cautious not to exploit these policies. Issuers may flag you for suspicious activities, such as applying for a card, making significant purchases to earn a welcome bonus, and then returning items after receiving the bonus. Chase is particularly known for closing accounts with little notice if it suspects fraudulent behavior.

If the situation is a random and reasonable one, you should have minimal concerns. However, avoid using these policies to exploit the system—doing so puts you at risk of account shutdowns and may push issuers to implement stricter rules, ultimately affecting everyone.

Bottom line

Airline cancellations can occur, resulting in refunds, confusion, and various inconveniences. The positive news is that, in most cases, your welcome bonus should remain intact if you receive a refund after meeting the minimum spending requirement for the bonus, except for American Express.