Refunds? (Newbie alert, sorry!)

osaddict

I have my first credit card, Halifax Clarity (I'm only 28, it's taken me this long lol), which I used to buy loads of stuff in the Adidas sale, taking full advantage of their excellent free returns policy.

As suggested by Martin, the card is paid off in full each month via direct debit (on 20th of the month).

I intend to return quite a bit of the Adidas stuff, as a newbie I'm not sure what happens with the returns process, my guess is this:

1. items are returned within the same month and before the statement is sent out on 16th, hence the direct debit will be lower -e.g. 200 quid, refund of 50, dd = 150.

2. items are returned after/Adidas process after 16th month, I'll pay the full e.g. 200 quid and then what happens to the 50 quid? - It sits on the card? - How do you 'use it' when there's a direct debit setup to pay it all off?!

Sorry for the newbie questions, it's the first time I've had a credit card (just got for the benefits abroad!) so I'm not sure how it all works.

Cheers!

goaroundnow

Hi

If you pay the full balance and then there are credits (refunds) applied to the account, you will have a credit balance (as opposed to the normal debit balance).

Assuming you spend on the card again, this credit balance will be reflected in the next month's bill.

For example,

Credit balance - £50

Spend in a month - £100

Balance (owed) on next bill - £50

If you were to cancel the card, Halifax would be obliged to return any credit to you by cheque / transfer.

Hope this helps.

dzug1

It sits on the card and you use it for future purchases.

You need to check the T&C closely, but I don't think that your DD will differ from that on your statement. In other words regardless of the credits, they will still take the notified full balance DD. It won't get adjusted until the NEXT statement.

osaddict

Thanks both - that's very helpful, well, at least I hope I get round to returning some of the stuff - otherwise it's 400 quids worth of Adidas stuff, oops!