Amex - Does refund count towards payment

lisyloo

I’ve had a reasonable sized refund on Amex after my statement date.
can I reduce my payment without incurring interest? 

la531983

The only way you wont incur any interest at all is if you pay the full balance off, as normal. A refund does not count towards minimum payment requirements.

SiliconChip

When I had a large refund to my Amex card a few years ago I got them to transfer it to my bank account shortly after it had arrived (just checked my records, the refund was made on 21st November and the transfer to my account was completed on 4th December).

la531983

SiliconChip said:

When I had a large refund to my Amex card a few years ago I got them to transfer it to my bank account shortly after it had arrived (just checked my records, the refund was made on 21st November and the transfer to my account was completed on 4th December).

This is only relevant if the refund puts you into a credit balance, I get the feeling this isnt the case here.

Nasqueron

If you read the account terms and conditions (a novelty I know, usually tucked away on the bank website) it'll tell you

Normally a credit / refund will not count towards the payment as it's simply returning a previous earlier order

The only one I have had that counts towards a payment is cashback - Lloyds reduced my DD by the cashback amount after it was paid

Emmia

It may depend on when your statement is generated vs when the refund is received in that it would reduce the bill - but you should always (and especially with the rates Amex charges) pay your card off in full wherever possible. 

There's no point in earning cashback or points if the interest you're charged exceeds the benefit you get from those.

DullGreyGuy

It may very by product, for Chargecards they do count but then you see that because the minimum payment shown on online banking reduces

lisyloo

No worries. I will pay in full and then request a transfer of credit.
I am fairly sure it varies by product but can't remember what it is for Amex so safer to do the above.

DullGreyGuy

lisyloo said:

No worries. I will pay in full and then request a transfer of credit.
I am fairly sure it varies by product but can't remember what it is for Amex so safer to do the above.

When you go to pay don't you get 4 options... minimum payment, statement balance, total balance and other? I don't get the first because it's a chargecard but they do adjust as refunds come in. 

macman24

Officially, no.

If the only purchase you had on your card at billing date was £1000, then you return the item after the billing date putting your net balance back to zero, they will still require the minimum payment amount on the £1000 generated at billing.

I know this seems mad considering this will put you into a negative balance with them for what seems like nothing.

In such a situation, if you speak to them ahead of the due date, they can offset refunds against the mimimum payment.

lisyloo

DullGreyGuy said:

lisyloo said:

No worries. I will pay in full and then request a transfer of credit.
I am fairly sure it varies by product but can't remember what it is for Amex so safer to do the above.

When you go to pay don't you get 4 options... minimum payment, statement balance, total balance and other? I don't get the first because it's a chargecard but they do adjust as refunds come in. 

I will check and let you know. Refund hasn't appeared yet (I had to sign so maybe different process - they always seem to take longer).