Refund to credit card - interest recalculation

Rscott93

Hello folks.
I am due a refund from a travel agent back onto my credit card any day now. I have paid interest on this transaction as I was not in a position to pay the balance in full before interest charges were added, will the credit card company deduct any interest from this transaction off the balance of the card?

Thanks.

[Deleted User]

No. The balance will simply be reduced by the amount of the refund.

Rscott93

Deleted_User said:

No. The balance will simply be reduced by the amount of the refund.

Is this standard process? I only ask as when I received the refund for the flights the credit card company deducted interest from that transaction which I was surprised at. 

cymruchris

If you've paid interest, it means the full balance wasn't cleared by the original statement date.

You're getting a refund from your travel agent for a cancelled holiday I guess? So the refund is the amount you paid.

Had this pandemic not happened, and you'd have gone on your holiday, that interest you paid would always have been the interest you'd paid because of the fact you hadn't paid the balance in full on time to prevent it, and it wouldn't have been refunded in those circumstances, so is unlikely to be any different in these circumstances. I can't imagine the credit card company is going to voluntarily pay back any interest you've paid by using their financial services as per your agreed contract.

When you say the flight refund had interest deducted from your transaction - can you clarify what yo mean?

Rscott93

cymruchris said:

If you've paid interest, it means the full balance wasn't cleared by the original statement date.

You're getting a refund from your travel agent for a cancelled holiday I guess? So the refund is the amount you paid.

Had this pandemic not happened, and you'd have gone on your holiday, that interest you paid would always have been the interest you'd paid because of the fact you hadn't paid the balance in full on time to prevent it, and it wouldn't have been refunded in those circumstances, so is unlikely to be any different in these circumstances. I can't imagine the credit card company is going to voluntarily pay back any interest you've paid by using their financial services as per your agreed contract.

When you say the flight refund had interest deducted from your transaction - can you clarify what yo mean?

Yes absolutely. Jet2 refunded me the £227 for the flights, and on the same day on my statement there was an "interest adjustment" of £62 which was deducted from my balance.