In short: a refund returns money you paid for something you didn't receive. Compensation is an additional payment for the trouble a disruption caused. You can sometimes get both, but they come from different rules.
Refunds
A refund puts you back where you started. Typical examples:
- An airline cancels your flight and you choose not to travel.
- You return a product within the store's return window or a legal cancellation period.
- A service you paid for in advance is never provided.
Refund rights are common. Most countries' consumer laws require a refund when a business fails to provide what you paid for.
Compensation
Compensation is extra money on top of any refund. For flights, some laws fix the amount in advance:
| Framework | Covers | Fixed amounts |
|---|---|---|
| EU Regulation 261/2004 | Flights from the EU, and into the EU on EU airlines | €250, €400 or €600, depending on distance |
| UK261 | Flights from the UK, and into the UK on UK or EU airlines | £220, £350 or £520, depending on distance |
| Canada's APPR | Flights to, from and within Canada | CA$125 to CA$1,000 for delays, depending on delay length and airline size |
| US DOT rules | Flights to, from and within the US | No fixed compensation for delays or cancellations |
Compensation usually isn't owed when the disruption was outside the airline's control, such as severe weather or air traffic control restrictions.
Which should you ask for?
- Check the refund first. If you didn't fly or didn't receive the product, ask for your money back.
- Then check compensation. For flights, use the flight compensation checker to see which frameworks may apply.
- Put it in writing. The refund letter generator creates a clear request you can edit.
Accepting a voucher or travel credit can affect your refund rights, so read the terms before agreeing.