The U.S. Department of Transportation has issued new rules requiring airlines to automatically provide cash refunds to passengers in certain situations.

Previously, airlines set their own refund policies, making it confusing for passengers. Now, airlines are required to give cash refunds for:

• Canceled or significantly changed flights: This includes changes in departure or arrival times by more than 3 hours domestically or 6 hours internationally, changes in airports, downgrades in service, or changes that make the flight less accessible to disabled passengers.
• Significantly delayed baggage: Depending on the flight length, passengers will get their checked bag fee back if their bag is delivered after 12-30 hours of their flight arriving.
• Unprovided extras: Passengers will be refunded for in-flight extras they paid for but weren’t provided, such as Wi-Fi or seat selection.

The refunds must be automatic, without passengers having to request them. Airlines must also issue refunds within a set timeframe (7 business days for credit cards, 20 days for other payments) in the original form of payment (cash or credit card). Vouchers or travel credits are no longer allowed unless the passenger chooses them.

The new rule also clarifies other situations where passengers are entitled to refunds, such as when a government restricts travel due to a serious illness.

In addition to these refund rules, the DOT is considering other passenger-friendly regulations, such as banning fees for families to sit together and guaranteeing parents can sit with their young children for free. They’re also looking to expand rights for wheelchair users.