refunds on a creit card

terrythom

I have a LloydsTSB Airmiles Amex card and have recently been given a part refund from a transaction. I asked Lloyds Card Services if I could deduct the refund from my next payment (I pay in full each month) and was told that 'a refund is not considered to be a payment'(?), and if I deduct it I will be charged interest as it will be a part payment of the balance. They will either refund to my Lloyds account, which I do not want, as it is not my principal current acc., or send me a cheque. Is this usual, or realistic?

[Deleted User]

The company should be refunding to the means of purchase - ie your card.

But I would not risk it being applied in time and would still make the full payment. A small credit balance caused by a refund shouldn't cause any issues.

Scaredy_Cat_3

It's pretty standard. If you deduct the amount of the refund when you make your payment, the computer system will register your payment as a part payment and you will incur interest. It's safest to pay in full (if that's what you usually do) and wait for the refund to show next month.

If you pay by direct debit, then refunds are considered part of the payment and the direct debit would reduce by the amount of the payment.

When you have the refund on your account you should be able to spend on your card in order to use it up, or request a refund to be sent to your bank. It seems a bit unhelpful if they will only refund to a Lloyds account, I think most cards would refund the money to any bank account you tell them to.