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The secret way to get a refund for flights paid with a Southwest gift card

April 24, 2020
4 min read
LAX Airport Operations
The secret way to get a refund for flights paid with a Southwest gift card
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By now, every TPG reader should know that you are entitled to a refund for your canceled flight — even if the airline says you aren’t.

This is based on the Department of Transportation policy stating that airlines need to refund you when involuntarily canceling a flight.

For canceled flights booked with credit cards (here are our top recommended airline cards), you'll typically get your money back as a statement credit. But, what happens if you paid for your flight with a gift card?

Well, with Southwest, many readers were offered travel funds instead of getting their money back to a gift card. These readers were upset to learn that travel funds are a lot more restrictive than the original gift card.

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For one, travel funds must be used by the originally-ticketed passenger. So, say you booked a flight for your friend using your gift card that ultimately gets canceled. Turns out, your friend will be the one with the future travel credit. That takes away a lot of flexibility, since gift cards can be used to purchase travel for anyone.

Southwest check-in counter in Maui, HI (Photo by Zach Griff/The Points Guy.)

Additionally, while Southwest gift cards never expire, travel funds do. Typically, they are only valid from one year from the date of ticket purchase. However, in light of the coronavirus pandemic, Southwest has extended the validity to Sept. 7, 2022. Even so, there's a big difference between getting your money back to a gift card that never expires and getting a refund in the form of a travel fund that expires in just over two years.

Related: Southwest extends Companion Pass, elite status benefits into 2021

As frustrating as this may be, receiving travel funds as a refund actually lines up with the gift card terms and conditions, which state "Southwest gift card redeemed for travel is not refundable. If travel is not taken, the funds will be held with an expiration date."

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As a Southwest spokesperson explained:



"Unlike credit card payments, Southwest gift card refunds provide a unique challenge as many Customers do not keep the original card once it’s been redeemed. Due to this security concern, it is not our policy to reissue gift card funds back to the original gift card."

So, while you may think you're stuck with travel funds when Southwest cancels a flight that was purchased with a gift card, that's actually not the case!

Related: Southwest’s groundbreaking feature will allow you to convert vouchers into Rapid Rewards points

Instead, as confirmed by a Southwest spokesperson, you can get a LUV Voucher in lieu of travel funds.

That's great news, since LUV Vouchers are transferable and can be used to book travel for anyone, which directly matches the terms of a gift card. Additionally, even though LUV Vouchers expire one year from when they're issued, in this case, Southwest will extend the validity if unused by the expiration date.

Southwest Boeing 737 interior. (Photo by Zach Griff/The Points Guy.)

Therefore, the only real difference between a gift card and LUV Voucher is that the latter can only be applied toward the purchase of airfare, but not for taxes and fees. Otherwise, they are about as similar as you can get — and much better than receiving travel funds.

So, how do you actually get a LUV Voucher for a flight purchased with a gift card? First, you need to make sure that Southwest canceled or significantly delayed your flight. Voluntary changes aren't eligible for the LUV Voucher.

If you're indeed eligible, then you should reach out to the Customer Relations Team to work through the process. Explain that you'd like a LUV Voucher instead of travel funds, and an agent should be able to help you.

After all, you are entitled to an unrestricted refund when the airline cancels your flight — even if you paid with a gift card.

Featured image by Patrick T. Fallon

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Apply for American Express® Gold Card
at American Express's secure site
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Best for dining at restaurants
TPG Editor‘s Rating
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
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2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.