Refund to credit card after statment paid

David555

Hi all

I'm wondering what happens if you needed to get a refund for a item paid for by credit card after you've paid your statment in full? For example you had a £2000 credit limit and say a £500 item that you returned. The refund hitting your card would take you to £2500, £500 over your £2000 credit limit. From what I heard over paying is a big no no?

Or are refunds treated differently? I'm in dispute with a eBay seller via PayPal for a item not received so any day now I expect a refund of around £200 when the case is closed. Or would it be best just to withdraw £200 from the cash machine before the PayPal £200 refund goes on my card. I know withdrawing cash isn't recommended but at the same time I don't want my refund money being held, getting my card closed or being charged fees for over paying etc

Thanks

[Deleted User]

The refund to card won't cause a problem.

chattychappy

No, don't take cash out.

Just continue to use the card in the normal way. If you don't intend to use the card for a while, you can ask the CC to refund you to your bank account/by cheque.

David555

Phew thanks!

ThePants999

David555 wrote: »

For example you had a £2000 credit limit and say a £500 item that you returned. The refund hitting your card would take you to £2500, £500 over your £2000 credit limit.

This doesn't make any sense. Why would you owe more money as a result of receiving a refund?

If you had maxed out your £2000 limit, and received a £500 refund, you'd have a £1500 balance, not £2500. Clearly not a problem.

If you had paid off the balance, and THEN received a £500 refund, you'd have a -£500 balance, i.e. they'd owe you £500. Which is also fine, you'd use it up by continuing to spend on the card.

gingercordial

ThePants999 wrote: »

This doesn't make any sense. Why would you owe more money as a result of receiving a refund?

I think he means he has a £2,000 limit and nothing on the card. The £500 refund will take him to £2,500 available to spend ("£500 over your £2000 credit limit.")

David555

Yes that was what I meant sorry. My last statment was paid in full but I'm due to receive a refund back on my card after the statment was paid which will now take me over my available credit limit so was a bit worried about being in over credit if there's a such thing?

Sam29

Being in credit is actually a breach of the terms and conditions of your card. They want you to owe them not the other way round.

You have 2 choices. Continue spending as normal and it will reduce the credit until you are in debt again.

Or 2 ring them and explain situation and ask them to transfer to your bank. I did this for a lower sum (£200) and was no problem and no transfer fee. But that was thru santander who i banked with so may vary between companies.

The credit card company will only care of the £500 stayed on your account for a long time. Either way you need to get the balance to zero again.

ironagedave

There is no issue here I have on a regular basis carried too many 1's over or miss calculated the last direct debit when doing my balance transfers leaving my old credit cards +100 or more in credit just ring them up and transfer it to the account associated with your Direct debit or just spend the £200 on the replacement item elsewhere or whatever you like.