Can a CC refund item of £60 back on a CC, count to pay for the monthly minimum payment (which is £24

Danny_G

Vanquis credit card.

If you have a balance on your vanquis credit card, and the minimum payment is £24.

If every month more than the minimum payment is paid  (say  £40) to cover the minimum payment.

now lets say you purchased a £60 item from the shop with your Vanquis card, but now want a £60 refund back to your Vanquis card  (which you purchased with your Vanquis card),

then you will get a +£60 to your vanquis credit card.

Can this £60 be used to pay the minimum payment of £24,   so I will NOT have to make a payment of £40 as I usually do every month?

so if I get the refund of £60, will that count towards the minimum payment (which is due)  and then I will not have to pay the minimum payment?

How about for other credit cards, santander, nationwide, mbna?

AnnieB2018

Yes in short. But it’s about the timing - did your refund get credited early enough for the direct debit system to be updated and the monthly payment to be reduced / stopped altogether. Depends

pbartlett

Normally a refund just goes towards effectively cancelling out that one transaction to which it applies (but not affecting the others on the statement that month,) - thus you have to make at least a minimum payment as well.

Shakin_Steve

Different card issuers have different rules. Check with your provider, don't assume, that way you won't miss a payment.

prowla

I would've thought that it would cancel out a previous transaction but not count as a paid-in credit.

Nebulous2

This has come up before. It seems to be card specific and is worth checking with the company. Some don't regard it as a minimum payment and still expect the minimum. Others will accept it as a payment if it clears the balance, but not otherwise. 

The concern card companies have is that people in difficulty will do it regularly, effectively never paying anything off. 

wiseonesomeofthetime

Halifax Clarity's view:


Refunds, cashback and credit adjustments to your account between the statement date and your payment due date will reduce your overall balance. But they will only count towards your minimum payment for that month (excluding arrears and any amount you owe above the credit limit) if they reduce the balance to less than that minimum payment amount. If this happens, and you have not yet paid your minimum payment, we will reduce the minimum payment needed so that it equals any full remaining balance.


I cannot see any similar wording on the Vanquis card yet.

phillw

I would assume that it doesn't as the reason they want you to maintain a minimum payment is also to make sure you can afford to make a minimum payment. Not that you're buying things and then taking them back for a refund.

You could essentially avoid making any payment to them until you hit your credit limit, just by buying and taking things back of ever greater value.

It's possible that there are dumb lenders out there that haven't noticed, or maybe the majority of people are too honest.

But yeah, if it turns out you can then the advice if someone can't afford their minimum payment is to get out there and buy a load of stuff and take it all back the next day.