Is a refund to a credit card not a 'payment'?

Hobsch

Apologies if this is covered anywhere else. A colleague in my office has a credit card with 1000 limit. It was at £990 approx. and she was due a refund of £102 (or thereabouts) which went onto her card on the 25th of the month, and the payment due date was 30th of the month.

As she was short on cash she didnt make the minimum payment as she presumed this covered it - so now she has been charged £25 for 'late payment'.

Is this normal?

I told her if anyone could sort it out my new found friends on the MSE forums could.

Thanks for any advice.

lynzpower

I was told by b/card that no, a refund isnt a payment, Id need to make a payment as well.

I think each CC may be different though

Broken_hearted

No its not counted as a payment and they will have been charged interest on the £102 for this month.

domestic_goddess

I am with halifax and they class a refund as a refund, they dont put that towards my payment. I think the best thing to do with credit cards and banks is never presume, always call or e mail to double check.
( I know that this is too late for your friend.... has she called to ask for a refund, they should do this as a one off i think)

southernscouser

As everyone has said a refund does not count as a payment with Mastercard and Visa.

Get your friend to phone up and just waffle how sorry she is and that she is a good loyal customer blah blah and they may refund the charge for her!

Imelda

Hi Hobsch,

I asked this question a few months ago, and it is correct, it is not classed as a payment. I guess this is because we could all just buy something to the value of the minimum payment and then refund it in order to avoid payment. I would still give it a go calling the company though as it seems like it was a genuine mistake and the charges maybe refunded. Let us know if they are successful
Immy

Hobsch

Many thanks guys. I passed this info on. I think she is going to plead with them that she didnt know this and I believe she didnt. Another case though of excessive charges. They told her to read her contract, and it does not say anywhere a refund is not a payment, then again it doesnt say it is so just one of those things. Thanks for your info though.