Technically, the credit card remains open (but you cant use it for purchases), for a considerable length of time to allow for delayed transactions etc. possibly for 6 months, just depends on the issuer. You just dont know or see that its open in your internet banking, and they front line staff at Citi wont tell you because they wouldnt now such fine details. I recently had a overseas transaction take 4 months to hit my account for example so that can happen.
If a refund comes the money will put your credit card in credit, the bank will either proactively contact you to arrange transfer of the money to another account, or they wont give a cough and expect you to follow it up. If you dont it would end up being transferred to govt unclaimed monies. If the refund arrives long after the account has been shut, they bank will either return the refund to the merchant, or try to contact you. Its probable they wont do either in a hurry, why would they prioritise that - makes sense right.
ANZ apparently has decided that they will refuse refunds sent back to a closed account. If this starts a trend in banks, the end result will be painful if happens to you.
Personally - I wouldnt pay for anything on a credit card that i am cancelling later if there is any chance of refunded purchases. I will always charge such things to my keeper credit card.
Worst case scenario you will ring the bank and they will say to contact the hotel, and the hotel will tell you to contact the bank. At either places you wont be able to communicate with back office who will deal with it, and may or may not frustrate you.
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