#1 - this is normal for LH - they either will do a direct deposit into your bank account (standard procedure in Germany and most of Europe) or if you feel unwell about that credit the amount to any credit card you give to them, not necessarily the original form of payment.

#2 - normally they will issue you a credit of 250/400/600€ depending on the distance of your ticket from start to destination (as the crop flies) according to EU261/04 directive. If your expenses exceed that you might need to remind them that they need to cover the higher amount if these expenses were reasonable...

Greetings - Dirk