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Cash vs Vouchers: Why You Should Always Insist on Cash

Airlines love offering vouchers instead of cash compensation. Under EC261, you have every right to refuse, and you should.

When an airline acknowledges your compensation claim but offers a travel voucher, airline credit, or loyalty miles instead of a bank transfer, it is not being generous — it is trying to minimise its costs at your expense. Vouchers are worth less than their face value, they come with restrictions, and they keep you tied to an airline that already let you down. EC261 is clear: compensation must be paid in money unless you specifically agree to an alternative.

Article 7(3) of EC261 states that compensation shall be paid in cash, by electronic bank transfer, bank order, or bank cheque. Vouchers and travel credit may be offered, but only with your explicit written consent. You are under no obligation to accept them, and the airline cannot make cash payment conditional on you agreeing to waive other rights.

Why vouchers are worth less than cash

A €400 voucher is not the same as €400 in your bank account. Vouchers come with expiry dates. If you do not travel within the validity period, the value is lost entirely. They restrict you to one airline, removing your ability to shop around for the best fare. They may have blackout dates, route restrictions, or minimum spend requirements. And if the airline goes bankrupt or ceases operations, your voucher becomes worthless overnight.

Cash payment Voucher/credit
Yours to spend however you choose
Restricted to one airline
No expiry date
Typically expires in 12–24 months
Value is guaranteed
Worthless if airline goes bankrupt
No conditions attached
May have blackout dates and route limits

How to respond to a voucher offer

If an airline offers vouchers or credit instead of cash, respond clearly and firmly. Thank them for acknowledging your claim. State that you are exercising your right under EC261 Article 7(3) to receive payment in cash or by bank transfer. Decline the voucher offer. Provide your bank details (IBAN and BIC for EU transfers) and request that the full statutory amount be transferred. Set a reasonable deadline of 14 to 21 days for payment.

Most airlines will comply once you demonstrate awareness of the regulation. If they do not, this is grounds for escalation to the national enforcement body.

Watch for conditional acceptance

Some airlines present voucher acceptance in a way that implies it is the only option, or bundle it with a waiver of further claims. Read any response carefully before accepting. Once you agree in writing to a voucher as "full and final settlement," it may be difficult to claim the difference in cash later.

Don't settle for a voucher

Check what you're actually owed in cash compensation.

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