Refunds and how they're credited

Vlodec

If I receive a refund for a transaction, is it treated as other payments (I'm aware I still have to make my monthly minimum payment on top of that) and credited to the oldest transaction first and so on, or is it specific to the transaction being refunded?

Nasqueron

A refund is classed as a credit, not a payment, it rarely comes off the balance owed. 

I assume you mean you will pay the card off in full, not the minimum, you might then end up in a small amount of credit but it'll be consumed when you spend over that amount

daveyjp

Its a credit to the account and can either be shown on the next statement as a credit, thereby reducing the balance owned, or if balance is zero putting the account in credit, or it can be used as a part payment against the current month's statement.

I've had both scenarios and is card issuer dependent.

Vlodec

daveyjp said:

Its a credit to the account and can either be shown on the next statement as a credit, thereby reducing the balance owned, or if balance is zero putting the account in credit, or it can be used as a part payment against the current month's statement.

I've had both scenarios and is card issuer dependent.

So it's not credited directly against the transaction being refunded but against the entire balance in the usual manner?

CliveOfIndia

Vlodec said:

daveyjp said:

Its a credit to the account and can either be shown on the next statement as a credit, thereby reducing the balance owned, or if balance is zero putting the account in credit, or it can be used as a part payment against the current month's statement.

I've had both scenarios and is card issuer dependent.

So it's not credited directly against the transaction being refunded but against the entire balance in the usual manner?

Correct.  And, as per previous replies, you do need to check your particular card's T&Cs to check whether it'll count as a "payment".  Some will class it as a payment, some will class it as a credit (must admit, in my experience it's more usual for it to be classed as a credit, not a payment, but all cards will be different).

Vlodec

Thanks everyone.

Fingerbobs

CliveOfIndia said:
.  Some will class it as a payment, some will class it as a credit (must admit, in my experience it's more usual for it to be classed as a credit, not a payment, but all cards will be different).

My Barclaycard classes refunds as payments towards the statement balance, and they even reduce the Direct Debit amount accordingly, but I think they're unusual in that respect. It's the only card I've ever held that treats refunds thus. 

WillPS

Fingerbobs said:

CliveOfIndia said:
.  Some will class it as a payment, some will class it as a credit (must admit, in my experience it's more usual for it to be classed as a credit, not a payment, but all cards will be different).

My Barclaycard classes refunds as payments towards the statement balance, and they even reduce the Direct Debit amount accordingly, but I think they're unusual in that respect. It's the only card I've ever held that treats refunds thus. 

You're right but it's worth noting - the DD amount is locked in around 5 working days before payment, so any refunds that apply after that won't cause the DD amount to decrease.

Nasqueron

Fingerbobs said:

CliveOfIndia said:
.  Some will class it as a payment, some will class it as a credit (must admit, in my experience it's more usual for it to be classed as a credit, not a payment, but all cards will be different).

My Barclaycard classes refunds as payments towards the statement balance, and they even reduce the Direct Debit amount accordingly, but I think they're unusual in that respect. It's the only card I've ever held that treats refunds thus. 

Indeed, my Lloyds one had a refund which didn't come off the DD amount, but the end of year payment of cashback did