Credit Card Refunds

rdawson84

Hi,

If you get a refund paid back onto a credit card, does this go towards paying off the oldest/highest outstanding balance/interest on this card?

For example, say I withdrew £1000 cash using a credit card and as a result i'm now paying higher level interest than if it was a standard purchase.

Then say I purchased a new laptop for £1000, but immediately took this laptop back and got a full refund. Has the £1000 refund paid off my previous cash withdrawal, as this was the oldest/highest balance, or has it simply "reversed" the £1000 laptop purchase?

in this example, I've have a £1000 outstanding balance, but would this be repayable at cash rate or purchase rate?

Sorry if that's not explained very well!

Foxy-Stoat_3

Interesting way of withdrawing cash at a reduced rate.

I would of assumed that the card company would refund the original transaction rather than credit the card account by the refund.