Credit Card Refund Question

Gunnerkenny

Hi guys,

Made a few purchases on my credit card this month and received the bill of 2100 today to be paid before the 10th of Jan. I am due a refund of 600 on one of the products I bought in the next 7 days.

Once I received the refund to my card I was going to pay off the balance of 1500 but a friend of mine said it doesnt work like that and I will need to pay the full amount on the bill and let it go into credit or else I will be charged.

Can anyone confirm or deny this? Sounds stupid to me!

emeldc

Your friend is right. The refund might not happen in time.

Edit: having said that if the refund arrives before the 10th ...................

Gunnerkenny

Yes I know if the refund does not happen in time well then I will need to pay the full amount but I do use internet banking so checking to see if the refund has been credited in time will be no problem.

My question is that providing, the refund has gone through before the payment date, will I be able to clear the balance of 1500 or will the full 2100 which shows on the paper bill need to be paid regardless?

Melendez

This post has been deleted.

Gunnerkenny

Melendez wrote: »

This post has been deleted.

Why didn't I think of this before????

Unfortunately it's Christmas and their lines are fairly busy, haven't the time to sit on hold forever!

dudara

A lot depends on the T&Cs and interest rates applied on your card.

Generally you are advised to pay the full amount due. If you don't, you may or may not be charged interest depending on the aging of the purchases. I think one of my credit cards gives me 56 days interest free on purchases. But this varies immensely from card to card.

Ciarrai76

I don't think a refund counts as a payment on your card. I've had refunds on my card in the past & it didn't make a difference to what I owed, same amount still came out.

The Glass Key

A refund is a credit to your account so you don't have to pay the full amount if there is €600 paid into the account as a refund before the due date. I can't see why it would work any other way €600 added to your balance is still €600 euro if you paid it as cash or if it comes as a refund.

BuffyBot

Card companies see refunds and payments differently.

For example: I owe 2400 on my Visa card. I normally pay 300 off a month. In December, I got a refund of 600 and decided not to bother making my payment = card company still considers me missing a payment. My balance has reduced to 1800, but I still didn't make a *payment* as required.

GerardKeating

Ciarrai76 wrote: »

I don't think a refund counts as a payment on your card. I've had refunds on my card in the past & it didn't make a difference to what I owed, same amount still came out.

For the purpose of a minimum payment, the refund would not count towards any minimum payment.

emeldc

BuffyBot wrote: »

Card companies see refunds and payments differently.

For example: I owe 2400 on my Visa card. I normally pay 300 off a month. In December, I got a refund of 600 and decided not to bother making my payment = card company still considers me missing a payment. My balance has reduced to 1800, but I still didn't make a *payment* as required.

You need to cut up your credit card :rolleyes:

3DataModem

Gunnerkenny wrote: »

Yes I know if the refund does not happen in time well then I will need to pay the full amount but I do use internet banking so checking to see if the refund has been credited in time will be no problem.

My question is that providing, the refund has gone through before the payment date, will I be able to clear the balance of 1500 or will the full 2100 which shows on the paper bill need to be paid regardless?

Just the 1500. Definitely.

BuffyBot

emeldc wrote: »

You need to cut up your credit card :rolleyes:

You do realise it's a fictional construct being used for illustrative purposes, right?

dobsdave

If the refund hits before 10th, you only need to pay 1500 to return to zero.
If it doesn't, then 2100 will be needed to ensure you dont pay interest.

As said, a refund doesn't count as payment in regards to a minimum payment, but does in regards to reducing your balance.

Please dont ask your friend for advice on credit cards again

Gunnerkenny

dobsdave wrote: »

If the refund hits before 10th, you only need to pay 1500 to return to zero.
If it doesn't, then 2100 will be needed to ensure you dont pay interest.

As said, a refund doesn't count as payment in regards to a minimum payment, but does in regards to reducing your balance.

Please dont ask your friend for advice on credit cards again

Sorry for only posting now, spoke with bank and it seems the 2100 is still payable regardless of if the refund comes through or not!

whiteshorts

It can vary from CC companies.
I got caught by getting a refund and only paying the balance less the refund.
Noticed I got charged interest the following month and rang them.
The reply was "refunds do not count as a payment on your card".
I asked why and was told if the refund is cancelled, you have not paid what was due and therefore they don't count it as payment.
The same thing happened on a different credit card and they accepted the balance less the refund!
So it would really depend on which credit card issuer you were with.

dobsdave

Gunnerkenny wrote: »

Sorry for only posting now, spoke with bank and it seems the 2100 is still payable regardless of if the refund comes through or not!

That makes no sense
If the refund hits your account in time your balance will be 1500.
If not then fair enough, I can see why 2100 is being quoted.
I would double check with your bank if I were you.