Refunds from refundable tickets are credited back to the original form of purchase.
Exception: If you used a Southwest Gift Card you'll receive travel funds, linked to the original passenger, good for one year from the original date of purchase. (Summary: Never use a gift card to purchase refundable tickets.)
Note: A major recent policy change can affect refundability.
Limitations within the new "next generation reservation system" have apparently forced a significant policy change on "refundable" fares (Business Select, Anytime, Senior, etc.).
More info here. (Choose "Next Generation Reservation System" from the "Select Topic" menu on the left.)
Going forward, you should never change/modify a refundable fare. Always cancel and then rebook that fare. Otherwise you'll lose the refundability.
This means that you'll have funds tied up with Southwest (until the refund is issued), and you'll lose any EarlyBird Check-In fees you've paid should you need to cancel/rebook.
Most importantly, this is completely counter intuitive to how we've always managed reservations with Southwest. I suspect this new policy will trip up many. Beware.
