Do refunds count towards CC payments?

Empty_pockets

Hi,

Used the cc quite a lot this month and also had a couple of issues where I had to seek refunds.

Now my statement is dated 14/8/12, Balance £1785.09, payment date 29/8/12.

16/8 - I made a payment of 485.09
17/8 - I had a refund of 208.99
17/8 - I had a refund of 419.76
23/8 - I made a payment of 816.30

Total payments from me £1301.39
Total credits including refunds £1930.14


Will the total credits cover my balance in full so I don't incur interest or will the just factor in the payments direct from me ( leaving me £500 odd short)

Thanks.

aimingforadebtfreelife

I have Cap 1 card and any refunds paid onto account show as a credit and knocks off the amount I owe. Online it showed I owed £200 this month for payment and when £125 got refunded it showed only £75 was due.

True to say if you are having a tight month this is a way to avoid payment. Many on here will say you should budget better blah blah blah but like all humans some months are tight and that is life.

I would check online with your card to see if the monthly payment due has changed - or give them a quick call.

Empty_pockets

I'm with Cap 1.

It only shows the min due, which i've covered and now shows nil.

Wanted to make sure I paid in full and didn't accrue interest.

Thanks for the info.

redpete

I've got a Tesco CC. Refunds after the statement date but before the payment date have not counted towards the payment made - so if I reduce my monthly payment by the amount of the refund it will count as though I had not paid off the full amount. and therefore I would pay interest the following month.

thenudeone

The terms probably say "no interest if you pay the full statement balance", not "if the full statement balance is credited", so they would probably be within their rights to charge interest, although in practice it depends on how their systems are set up.

My guess is that a refund and a payment are treated the same.

Eg:
day before statement - Purchase £100
Statement balance £100
day after statement - Refund £100
No other transactions
New balance 2 days after statement -nil
But you shouldn't make a payment (which is what the statement says) because to do so would break another of the terms - "don't put the account in credit"
So - they shouldn't charge interest in this circumstance, IMO. They only way this could be achieved would be by treating refunds and payments the same way on the system.

markdavey

Barclaycard have confirmed this to the wife. You are expected to PAY for what you have spent on the card. Refunds DO NOT count towards a payment if they hit after statement date. We have been in this situation a number of times.

It could potentially mean you end up with a credit rather than a debit balance.

You WILL be charged interest on any amount below the total amount shown on the statement regardless of refunds hitting the account before payment date.

dalesrider

You will have to pay the full balance as listed on the statement. If you then don't spend more then you have credits next month. So you have a credit balance get them to do a FREE cashline back to the account used for payments.
You CANNOT have a credit balance on a credit card.

exel1966

dalesrider wrote: »

You CANNOT have a credit balance on a credit card.

You CAN put a credit card into the black and have a positive balance, though you generally shouldn't, at least by not much. Some cards will reject, some will accept and think nothing of it, some will accept and charge a fee if left for 28 days or more. Refunds can also put a card in credit.

There are times when it's useful to put a temporary positive balance on the card ie. to stop residual interest.
What's definitely not advisable is purposely loading a card with large sums to effectively increase a credit limit which can lead to the account being suspended.

It all depends on the terms of your particular card.