Southwest Airlines Wouldn't Give Me Cash. I Transferred My Credit Instead.

Southwest Airlines gives you a credit when you cancel, not a refund. Unless you have their highest fare tier. I booked a trip to Denver for $280 and had to cancel due to a family emergency. Southwest said they could give me a travel credit valid for one year.

One year sounded okay until I realized I had no upcoming trips planned and my work schedule was unpredictable. I asked if I could get a cash refund instead. Southwest said no, unless I had purchased the refundable fare which costs almost double.

Then I remembered: Southwest has the "Transfer of Funds" policy. You can transfer your travel credit to another person for free. I transferred my credit to my sister, who used it for a trip to Phoenix. The problem was solved. But it took three phone calls and an hour on hold.

The bigger issue is that Southwest's policy is buried in their terms. They do not tell you upfront that refundable fares are the only way to get cash back. When you book, it looks like all fares are refundable because of their cancellation flexibility policy but that flexibility only applies to credits, not cash.

I now buy refundable fares for any trip that is more than a month out. The extra cost is worth the peace of mind. And if I change my mind, I get actual cash back, not a credit I may or may not use.