Payment Sequence Question

GingerBob_3

I've got a single item showing on the latest statement for one of my cards. It's for just over £100, plus about £4 non-sterling transaction fee, due to the £100 item being purchased online from the US. However, I've now got a full refund on the item, which will be on my account and will show on the next statement. Two questions:

Might the non-sterling fee be refunded (I'm thinking not)?

What do I need to pay on the current statement - minimum or nothing - the latter if I determine that the non-sterling fee is also refunded? Or maybe regardless of any refund I still need to pay simply because there's a negative balance on the statement? Thanks.

Ben8282

Any advice given is based on the assumption that this is a card which is repaid in full every month and that the last statement was for just over £104. If this is not the case then you MUST make the minimum payment. You cannot use this refund in lieu of a minimum payment on a card which is carrying a balance.

Remember that the GBP amount refunded is unlikely to be exactly equal to the amount originally debited; it could be more or less depending on the exchange rate applied on the day of purchase and the day of refund. You may make a small profit or you may make a small loss.
I personally doubt the non-sterling transaction fee will be refunded but can't know for sure.

Assuming that there has been no further use of the card since the last statement and the refund appears on your account prior to the payment due date, then simply repay whatever amount is left by the payment due date so that on the payment due date the balance of the account is nil.
If the refund does not appear on the account prior to the payment due date then you will need to make a payment as normal. If you want to pay interest, then make a minimum payment. If you don't want to pay interest then make full payment of the entire statement balance. You can recover any additional amounts paid by making further purchases.

If however you have used the card since the last statement then, the amounts of money involved not being significant, I would choose the most prudent option and pay at least the minimum payment due. You can recover any additional amounts paid by making further purchases.

Dobbibill

You don't get a non-sterling transaction refunded by the merchant, just the cost of the goods.

Yes, you would still need to pay at least the minimum payment. Refunds don't count as a payment off your bill.

agrinnall

Dobbibill wrote: »

Refunds don't count as a payment off your bill.

I'm not completely convinced. On at least one of my cards a refund will reduce the full balance payment due to be taken if it arrives in time, so logically that would seem to be the issuer treating it as a payment.

However, as it'd Bob we're talking about, I'm pretty sure the big, bad banks will do whatever they can to make things as awkward as possible for him, because he'd expect nothing less.

molerat

Agree with agrinall. A refund is counted against due payments on some cards. This is why DD is always the safest way.

GingerBob_3

Thanks to all for your thoughts. I'll probably pay the minimum. It's an MBNA card so that will be £25. Any interest should be minimal and I'll spend the positive balance next month.


Of course this is the sort of thing that can easily catch people out. Forgetting about the complication of the non-sterling fee, it's easy to see how someone might just think there's no need for a payment at all (although as noted, it might be alright for some cards). Next thing they've been slammed with a late payment marker and a £12 penalty. Dysfunctional CRA reporting again

Dobbibill

I knew those pesky CRAs would come into it somewhere GingerBob

Maybe I should have worded my previous post as 'most' cards don't count a refund as payment. I'm aware there are a handful that do. My bad (I think I'd only had 2 coffees by that time this morning)

bris

I have never had a refund count as a payment on any of my cards unless it covered the full amount.


CC aren't stupid it would be too easy to abuse the system by buying then deliberately getting a refund to count as the minimum payment.


Even with the refund you need to pay the minimum required for the balance left over. Obviously if it covers the balance no payment is due as long as it's credited by your payment date.

GingerBob_3

Actually I'm going to make the minimum payment + £1. Don't want anything negative slapped against me by the CRAs!

redux

You could phone and ask. I did this to check when after a refund I noticed in the online account that the minimum payment required was now zero. I was intending to pay in full anyway, so to me it was now a question of still the statement defined amount in full or just making up the difference. Answer: the latter.

Before you call or pay, maybe you can check something online like I did - does it say minimum payment the same amount as before, or now zero?

If you have spending since the statement then sending something anyway probably won't sail you into credit.

GingerBob_3

redux wrote: »

You could phone and ask. I did this to check when after a refund I noticed in the online account that the minimum payment required was now zero. I was intending to pay in full anyway, so to me it was now a question of still the statement defined amount in full or just making up the difference. Answer: the latter.

Before you call or pay, maybe you can check something online like I did - does it say minimum payment the same amount as before, or now zero?

If you have spending since the statement then sending something anyway probably won't sail you into credit.

Yes, I just checked online. The refund is in - slightly less than the original price (currency rates I guess) - there's no refund on the sterling transaction fee, at least not yet, maybe there never will be. The minimum payment is still £25 but the account balance is just over £6. Payment date is in a week or so. I'm going to pay £26 to cover all possibilities.