Refunds to Credit Cards

Stato71

Recently used a Halifax Clarity card to paid a Bond for a hire car and the duration of the hire went over the cards statement date. I'm expecting the Bond to be refunded to my card before the cards repayment date and the balance for the card will be paid in full by the required date.
However Halifax are telling me a refund of this nature will NOT count towards paying off the balance? So in essence I'm being told I have to pay off the full balance myself and then reclaim the refund from the card, which seem crazy.
Is this correct and do all credit cards behave in this manner, I've never heard of it before or experienced it.

[Deleted User]

Not all behave in that manner, but some do.

Well done for checking before assuming it would count as a payment though. It could have been an expensive mistake.

[Deleted User]

Some do, some don't.

Capital One I believe take refunds as payment towards a statement balance.

SuperAllyB

By no means an expert, but surely if you pay the minimum payment you will avoid any fees or.charges.

And if the refund comes.rhrough in time, your balance will be zero (or in credit) so they can hardly charge you interest?

Stato71

That's what I thought but according to Halifax that's NOT how the Clarity Card work, which is a black mark against the card for overseas usage.

[Deleted User]

How is it a "black mark" against the card?

eDicky

Did the hire firm actually take the payment, refundable later, or merely place a pre-authorisation amount on your card? If the latter, you will have no such problem when the pre-auth is removed.

Stato71

It was a taken payment and refund minus mileage/toll charges.

Stato71

I say its a black mark against this card as the benefit you get from not being charged for paying in local currency and the favourable exchange rate are completely out weighed by the refund not being seen as balance payment. The interest on the hire car bond fee is as much as another card would have charged for overseas usage.

[Deleted User]

But a refund is a refund - it can be (and in this case, has been) treated separately to a balance payment made by you from your bank.

Hardly a black mark.

Stato71

If they charge me interest on the amount even when it has been refunded then that's a black mark in my book. I'm making sure the balance is cleared down by the date required, it shouldn't matter if that is a mix of refund or payments I make, if the balance is zero then how can they justify charging interest?
At the end of the day it's something that I was unaware of and I suspect will be the case for many other people. When it comes to saving money not being charged unnecessary interest on credit cards is high on my personal list, so I just hope this gotcha helps others.