For many people in the U.S., slow refunds aren’t just about “extra” money anymore. They’re now a real part of cash flow planning. An April 2025 ACI Worldwide survey found that nearly 40% of taxpayers use their refund (especially their tax refund) to pay down debt, including credit cards and loans.
When that money doesn’t arrive on time, it can mean the difference between paying a bill and swiping a high-interest card. Cue the anxious habit of refreshing your bank app, hoping the next update will somehow summon the money you were promised.
Life gives us plenty of moments where expectations don’t match reality, but getting your money back shouldn’t be one of them. In this article, we’ll break down why refunds can take two to three times longer than promised—and what you can actually do about it.
What Kind of Refund Are You Waiting For?
Not all refunds are created equally. Your first step is to identify the type of refund you’re dealing with, as each has its own “normal” timeline and will give you an idea of whether it's time to escalate.
Let’s break it down:
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Federal tax refund: Money returned by the IRS after you file your federal tax return. Timelines depend on how you filed (electronic vs. paper) and whether anything triggered extra review, such as errors or any apparent discrepancies.
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State tax refund: Contrary to popular belief, these are not issued by the IRS. Each state has its own taxing authority that handles state tax returns. Processing times, tracking tools, and reasons for delays vary by state.
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Merchant refunds (online purchases, subscriptions, returns): Refunds from retailers, apps, or services after a return, cancellation, or billing correction. These involve two steps: the merchant processing the refund, then your bank posting it.
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Travel refunds (airlines, hotels, rental cars, cruises): Change of travel plans? As long as you met the requirements, you’re due money. These can be slow due to complex fare rules, third-party booking platforms, or “goodwill” reviews instead of automatic refunds.
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Bank-related refunds (reversed charges, overdraft corrections, disputes): Refunds initiated by your bank after an error, fee reversal, or dispute. These follow banking regulations and card-network rules, which can turn days into weeks.
How Pine Can Help with Your Refund Delays
“Most people don’t have time to call airlines, banks, tax agencies, and online shops over and over. That’s where Pine comes in. Our AI checks your accounts, flags late refunds, and helps you file the right complaints or compensation claims automatically. Every refund that lands sooner is one less night you’re worrying about how to cover your bills.” - Stanley Wei, CEO of Pine
How Long Should a Refund Normally Take?
Some refunds really do take weeks by design. Others shouldn’t take more than a few business days.
Use the table below to see whether you’re dealing with a routine wait or an actual delay.
Typical Refund Timelines
| Refund type | How you paid / filed | Typical timeline | When to worry |
|---|---|---|---|
| Federal tax refund | E-file + direct deposit | Up to 21 days | No update after 21 days |
| Federal tax refund | E-file + paper check | ~21 days, mail may add time | Check not mailed after approval |
| Federal tax refund | Paper return | 6–8 weeks (can be longer) | No movement after ~8 weeks |
| State tax refund | E-file | 2–6 weeks (varies by state) | Past the state’s published range |
| State tax refund | Paper return | 6–12+ weeks | No status change after 8–10 weeks |
| Online purchase refund | Merchant-initiated (credit card) | 3–14 business days | Past 14 business days |
| Card chargeback / dispute | Credit card dispute | Weeks to months | No provisional credit or updates |
| Airline / travel refund | Canceled flight, hotel, rental | 7 days (credit card), 20 days (other methods) | No confirmation after 7 or 20 days |
Sources: IRS (2022), HR Block (2025), Taxes for Expats (2025), Bankrate (2025), ChargeBack Help (2025)
What to Do About Your Refund Delays
Once you know what kind of refund you’re waiting on and the general timeline, the next step is figuring out why it’s taking so long and when to escalate. Below are the most common refund-delay scenarios, and what to do in each one.
Why is my federal tax refund taking so long?
If you’re past the IRS’s normal refund timelines, here are the most common reasons refunds get held up:
- Errors or missing information on the return
- Identity verification or fraud screening
- Claimed credits that require extra review
- Manual processing for paper returns
- Bank delays posting the deposit after the IRS sends it
Before calling anyone, your first stop should be the IRS’s official tools:
Both tracking tools show the same status that IRS phone agents see, and the IRS updates them once per day. Calling generally won’t speed things up.
When to escalate:
- If it’s been more than 21 days since you e-filed
- If your status hasn’t changed in 6+ weeks
- If the IRS has requested information and you’ve already responded
At that point, you can contact the IRS directly to inquire into what’s going on. If you’ve tried this and the delay is causing financial hardship, reach out to the Taxpayer Advocate Service (TAS).
TAS is an independent organization within the IRS that helps taxpayers who are stuck after trying normal channels. Their help is free, and they assign you a dedicated advocate.
Why is my state refund taking so long?
State tax refunds are handled separately from the IRS, with different rules and timelines. If you’re past your state’s typical processing window, delays are often tied to:
- Name or address mismatches between your return and state records
- Offsets for unpaid state debts (tickets, taxes, child support, etc.)
- Manual review flags triggered by credits or unusual filings
Each state has its own refund tracker and contact process, so if you’re past your state’s published timeline, the best next step is checking your state tax agency’s refund status tool.
If nothing’s moving, contact the state agency directly. Some states also offer a taxpayer advocate or ombudsman office for cases involving prolonged delays or financial hardship.
Availability depends on the state, so check your state tax agency’s website for escalation options.
Why is my online purchase or card refund taking so long?
Unlike tax refunds, card refunds involve two parties: the merchant and your bank.
Merchants promise things like:
- “3–5 business days”
- “7–10 business days”
- “Refund issued, please allow time for your bank to process”
In reality, the clock doesn’t fully start until the merchant actually sends the refund, and banks can take several additional business days to post it.
If the merchant is dragging their feet:
- Follow up with customer support and ask when the refund was issued, not just approved
- Keep written proof (emails, chat transcripts, receipts)
- If they go silent or refuse, escalate to your card issuer
Under U.S. law, you generally have at least 60 days to dispute a charge, and many card issuers allow up to 120 days. A dispute (chargeback) isn’t instant, but it creates leverage when a merchant won’t cooperate. If your refund delay is pushing you closer to interest, late fees, or overdrafts, that’s the signal it’s time to escalate the matter.
How Pine Helps You Chase Missing Money and Stay Out of Debt
“A delayed refund sounds small, but if you were counting on that cash to pay a bill, it can snowball fast, interest, late fees, even overdrafts. Pine helps you fight back on both sides: we help you get money you’re already owed, and we help you lower other bills so a slow tax refund or travel refund doesn’t force you onto a credit card or payday loan.” - Stanley Wei, CEO of Pine
Travel Refunds: Flights, Hotels, and Vacation Plans that Won’t Pay Up
Airline and train refunds — what’s normal vs. too long?
A 2024 federal rule by the Biden-Harris administration requires airlines to issue prompt refunds when a flight is canceled or significantly changed, and the passenger declines rebooking.
What “prompt” means in practice:
- Credit card purchases: refunds must be processed within 7 days
- Other payment methods (cash, check, miles): within 20 days
Airlines also can’t replace cash refunds with vouchers or travel credits unless you explicitly agree. Be careful what you agree to! In a nutshell, you’re entitled to a refund if:
- Your flight is canceled or significantly changed (e.g., large schedule shifts, airport changes, added connections, seat downgrades)
- You paid for extras (seat selection, Wi-Fi, bags) that weren’t provided
- Your checked baggage is seriously delayed (with timelines defined by flight length)
If you’re past 7 days (credit card) or 20 days (other methods) without confirmation or payment, the refund is overdue.
When you might be owed compensation, not just a refund
A refund isn’t always the end of the road. Depending on the cause of the disruption or inconvenience, you may be owed additional compensation, such as:
- Meals or meal vouchers
- Hotel accommodations for overnight cancellations
- Ground transportation
- Credits or vouchers for long controllable delays
- Reimbursement for delayed, lost, or damaged baggage
Whether compensation applies depends on the reason for the delay or cancellation. Issues within the airline’s control (maintenance, crew scheduling, certain operational problems) are more likely to score you compensation than the weather or security events.
The truth is, travelers miss out on additional compensation because airlines don’t always volunteer compensation details.
If you’d like a helpful guide that shows you the path to compensation for your specific airline, check out Pine’s travel compensation guides. They help you understand:
- When you qualify for compensation
- What documentation you need to have ready
- Exactly what to say (email drafts & scripts)
- How to file the claim
Bottom line: if your trip felt like a complete disaster because of the airline’s decisions, and the refund they’re offering doesn’t feel like it’s enough, then it’s worth checking whether you’re owed more than your ticket price.
Sources
- IRS, Check the status of a refund in just a few clicks using the Where’s My Refund? tool (February 2022)
- ACI Worldwide, ACI Worldwide Survey Shows Nearly 40% of Taxpayers Will Use Refunds for Debt Relief (April 2025)
- H&R Block, IRS refund status: How long does it take to get your tax refund? (2025)
- Taxes for Expats, Tax refund delay: Why it’s taking so long & how to fix it (February 2025)
- Bankrate, How do credit card refunds work? (August 2025)
- ChargeBackHelp, 2025 Chargeback Time Limits Explored and Explained (February 2025)
- DOT, Biden-Harris Administration Announces Final Rule Requiring Automatic Refunds of Airline Tickets and Ancillary Service Fees (April 2024)
- NerdWallet, Flight Delay and Cancellation Compensation: What to Know (December 2025)
