NFH

In 164 posts, Tim_T is the only person who raises this crucial point. Similarly Which haven't thought about it either, and nor has anyone who responded in their own forums:

https://conversation.which.co.uk/tra...ceo-alex-cruz/

https://conversation.which.co.uk/tra...tion-campaign/

How would airlines know each passenger's bank account to which any compensation (usually denominated in EUR) should be paid? Not every passenger is a simple consumer with only a GBP bank account and paying for their own flight with a UK debit card. Take the following examples of why the airline cannot automatically refund to the original card used to pay for the flight:

1. The tickets were paid for with a credit card that earns points, airmiles or cashback etc. Any refund to the same card will cause a cancellation of any earnt rewards, which could exceed the rewards earnt for purchasing the flight.
2. Refunding to a credit card gives an undue cost saving for the airline in that it receives a rebate of interchange fees; this cost saving causes the loss of benefits described above. This creates an undue loss of revenue to the credit card industry, which it would not tolerate in the long term.
3. The party who paid for the flight might not be the inconvenienced passenger who is entitled to compensation. It is the passenger who is inconvenienced and therefore legally entitled to compensation, not the party who paid for the flight. Take the example of a business traveller who is significantly delayed on his return home on a Friday evening. Although his employer paid for the flight, it is the passenger who is entitled to the compensation.
4. Although the flight might be paid for in GBP, EU261 compensation is usually due in EUR. In many cases, the passenger will have a EUR-denominated bank account and will want to receive compensation in the original round EUR amount without conversion to another currency such as GBP by the airline or a card issuer.
5. The passenger might no longer be using the credit card used to pay for the flight, particularly for flights booked many months in advance. A refund to it would cause a credit balance on that credit card rather than giving the passenger money that can be spent anywhere such as with payees that do not accept cards.

The only practical way for this to work is for each passenger's bank account number for EUR compensation to be specified at the time of booking or in the passenger's frequent flyer profile. For example, I nearly always pay for flights in GBP with my American Express British Airways credit card, but I would always want EU261 compensation to be paid in EUR to my German bank account. How else could this work?