Large refund on credit card

arsenalboy

I am fortunate that I can pay my card in full each month to avoid interest. My current M and S card statement is for £1900, but since the statement was issued I have received a refund of £3500 for some failed furniture. This has gone on my card and the balance is now in credit by circa £1600, so I dont owe anything, but technically at statement date I did.
Does this £3500 cover the previous balance as a payment or will I incur interest if I dont pay the £1900, even though this will push the card further into credit? 

cymruchris

As long as the £3500 is a fully cleared transaction before your ‘due by’ date - you won’t have to pay anything extra. If it’s going to be close - then pay the balance and then once everything clears you can get in touch with M&S and request a refund of the positive balance back to your current account. 

daveyjp

Check the terms of your credit card and check the app to see what the minimum payment due amount is.  Paying in full by direct debit makes things easier as the issuer will decide how much is due.

Some refunds made after the statement date are disregarded and the balance due is as per the statement, it does mean a potential large credit, but it can be refunded.  Other card issuers will treat the refund as a payment against the card if the refund is made before the due date..

I have experienced both, including recently where the refund was classed as a payment so no payment due last month.

Marksfish

I got caught out with this in the past and though the refund covered my monthly payment and more, it was classed as a missed payment. check the back of your statement, it should tell you what is classed as a payment and what isn't.

Olinda99

yes be careful don't assume it will count as a payment

DullGreyGuy

If you log into the banking app does it not show you what payment, if any, is due? Certainly most of ours do.