Voucher or cash? Airlines must pay you in cash unless you agree in writing
Updated · Checked against the regulations as current to September 3, 2026 · By LandedLate
No. Under Canada's Air Passenger Protection Regulations, an airline must pay compensation in money, and refunds by your original payment method. It can pay in vouchers, points or credit only if the offer is worth more than the cash owed, its value is given to you in writing, it never expires, and you confirm in writing that you chose it over money (section 21). Rules as of September 27, 2026.
The four conditions for anything other than cash
- It's worth more than the cash owed.
Not equal: greater than the minimum amount the regulations set (section 21(a)).
- You're told its value in writing.
The monetary value of the voucher or points has to be stated in writing (section 21(b)).
- It never expires.
A voucher with an expiry date can't replace compensation (section 21(c)).
- You confirm in writing that you chose it.
Including that you were told you could have money instead (section 21(d)). Not replying isn't written confirmation.
All four must be true. If one isn't, the airline still owes you money.
Compensation and refunds follow different rules
| Compensation | Refund | |
|---|---|---|
| What it is | $125 to $2,400 for the inconvenience | Your fare back, for flights or extras you didn't use |
| Default form | Money | The original payment method, to the person who paid |
| A voucher or credit only if | It's worth more, never expires, and you choose it in writing | It never expires and you choose it in writing |
| Deadline | 30 days to pay or explain after your claim; within 48 hours if bumped | 30 days after the airline becomes obliged to refund |
| Section | 19(4), 20(2), 21 | 18.2 |
Offers you'll see from airlines
- Flair's $60 e-voucher for delays over 60 minutes was a separate promise, not compensation, and Flair stopped offering it for bookings from June 1, 2026. Flair guide
- Porter's credit for disruptions beyond its control becomes a refund if Porter can't rebook you within 48 hours. Porter guide
- A goodwill credit after a delay that doesn't qualify is a bonus. After one that does, it doesn't replace the money.
What to write back
Example wording from a LandedLate reply
Under section 21 of the Air Passenger Protection Regulations, compensation must be paid in money unless I confirm in writing that I choose another form. I have not. Please pay the compensation owed in money within 30 days.
Free. LandedLate takes no share of what the airline pays you.
Questions
The airline sent a voucher instead of my $400. What do I do?
Reply in writing that you want the compensation in money, as section 21 of the regulations requires. Unless you confirmed in writing that you knew you could have cash and chose the voucher, the airline hasn't met the conditions for paying another way.
Is a bigger voucher allowed?
Only if you accept it. The voucher must be worth more than the cash amount owed, its value must be given to you in writing, it must never expire, and you must confirm in writing that you know you're entitled to money and choose the voucher (section 21). If any of the four is missing, it isn't valid compensation.
Can my refund be a travel credit?
Only if you choose it. Refunds go to the person who bought the ticket, by the original payment method, unless you're told in writing the amount and that the original method is available, the credit doesn't expire, and you confirm in writing that you chose it (section 18.2(1)). Refunds are due within 30 days (section 18.2(2)).
The airline gave me a credit for a short delay. Is that my compensation?
If the delay didn't qualify for compensation (for example, you arrived less than 3 hours late), a credit is a goodwill gesture and doesn't affect anything. If you arrived 3 or more hours late for a reason within the airline's control, you're still owed the money.
Should I ever take the voucher?
It can make sense if it's worth clearly more than the cash, never expires, and you'll fly that airline again. Get its value in writing first, and remember that cash is your default right.
Sources
- Air Passenger Protection Regulations, SOR/2019-150, sections 18.2 and 21 (Justice Laws)
- Canadian Transportation Agency: forms of refunds and compensation
- Canadian Transportation Agency: Flight delays and cancellations, a guide (PDF)
General information, not legal advice.