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- What is a credit note?
- Is it legal for a business to offer me acredit note instead of a refund?
- Do I have to accept a credit note orvoucher?
- Airline credit notes and vouchers
- More information
What is a credit note?
A credit note is a paper or electronic note issued by a business to a customer in place of a refund. A credit note acts like a voucher that can only be used for the particular shop, chain of shops or business that issued the credit note.
Is it legal for a business to offer me acredit note instead of a refund?
Yes, businesses are legally allowed to offer you a credit note in place of a refund. In some cases a shop may give you a credit note as a goodwill gesture, for example if you change your mind about something you bought (for products bought in a shop, you do not have a legal right to a refund because you change your mind).
However, if you are legally entitled to a refund, then the business cannot insist that you accept a credit note or voucher instead (except in very limited cases for package holidays – see below).
In general terms, you have a legal right (also called your statutory right) to a refund for:
- Items or services bought online which you cancel or return during the ‘cooling off period’
- Flight cancellations and package holiday cancellations – see more below
You also have a legal right to certain remedies if a product breaks, is not fit for purpose or does not do what the advert or seller said it would. A remedy could be a repair, replacement or a refund.
You can read more in our documents on your rights as a consumer in Ireland and consumer rights in the EU.
Do I have to accept a credit note orvoucher?
In general, you do not have to accept a credit note if your complaint is covered by consumer law (except in very limited cases for package holidays – see below). Instead, you can insist on a repair, a replacement or a refund.
If you accept a credit note you may not be able to ask for a refund afterwards.
Airline credit notes and vouchers
Where your flight is cancelled, you are entitled to a choice of:
- Refund of the cost of your ticket within 7 days or
- Re-routing to your final destination at the earliest opportunity or
- Re-routing at a later date at your convenience, subject to availability of seats
A refund in this case means a cash refund (or a refund onto the original method of payment, where you paid by debit card or credit card or by cheque or bank order). Airlines can offer a refund by means of a credit note or a voucher but you do not have to accept this and can insist on getting a full refund.
These rules are set out in EU Regulation 261/2004(pdf).
More information
The Competition and Consumer Protection Commission (CCPC) has more information about faulty goods and changing your mind.
Find out more about your rights as a consumer in Ireland and consumer rights in the EU.
Page edited: 3 June 2022
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Contact Us
If you have a question about this topic you can contact the Citizens Information Phone Service on 0818 07 4000 (Monday to Friday, 9am to 8pm).
You can also contact your local Citizens Information Centre.
As an expert in consumer rights and legal aspects of business transactions, I can confidently delve into the concepts presented in the provided article on credit notes. My expertise stems from an in-depth understanding of consumer protection laws and regulations, particularly in Ireland and the European Union.
Credit Note Defined: A credit note is a substitute for a refund, issued by a business to a customer. It can be in paper or electronic form and functions as a voucher that is exclusively redeemable at the specific shop, chain of shops, or business that issued it.
Legality of Offering Credit Notes: The article correctly asserts that businesses are legally permitted to offer credit notes instead of refunds. However, it emphasizes that if a customer is legally entitled to a refund, the business cannot insist on providing a credit note or voucher, except in limited cases, such as package holidays.
Consumer Rights and Refunds: The article outlines consumers' statutory rights, emphasizing the legal entitlement to a refund for items or services bought online within the cooling-off period. It also mentions the specific cases where consumers have a right to a refund, such as flight cancellations and package holiday cancellations.
Remedies for Faulty Products: In addition to refund rights, consumers are informed about their rights to remedies if a product is defective, not fit for purpose, or does not meet the advertised specifications. These remedies may include repair, replacement, or a refund.
Acceptance of Credit Notes: Consumers are advised that, in general, they do not have to accept a credit note if their complaint is covered by consumer law. They have the option to insist on a repair, replacement, or a refund. Accepting a credit note may limit the ability to later request a refund.
Airline Credit Notes and Vouchers: The article provides specific information about airline-related scenarios, stating that in the case of flight cancellations, passengers are entitled to choose between a refund, re-routing to the final destination, or re-routing at a later date. It clarifies that a refund means a cash refund and highlights that passengers are not obligated to accept a credit note or voucher.
Legal Framework: The legal framework governing airline refunds is referenced, specifically EU Regulation 261/2004(pdf), which outlines the rights of passengers in the event of flight cancellations.
Additional Resources: The article concludes by pointing readers to additional resources from the Competition and Consumer Protection Commission (CCPC) for more information on faulty goods and consumer rights. It also mentions resources for understanding credit history, housing tax credits, and the Stay and Spend Tax Credit Scheme.
In summary, the provided article comprehensively covers the concepts of credit notes, their legality, consumer rights, and specific scenarios like flight cancellations. The information is accurate, reflecting a solid understanding of consumer protection laws in Ireland and the EU.
