Statement vs Due Date Balance

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/82057115#Comment_82057115

As said already, it varies, some do count them as payments (eg AmEx, at least on the card I have) and some certainly dont. Regulations dont specify how they must be treated so it comes down to the contractual terms

garybaldy

Sounds like a useful task for one of the MSE staff experts - create a list of which credit card companies treat merchant refunds applied between the statement date and the due date as a payment?

More importantly, which do not? That is, expect you to pay the statement balance regardless of any transaction after the statement date.

molerat

One complication is how many days between refund and due date will it change the payment due.

Stuart_W

https://forums.moneysavingexpert.com/discussion/comment/82056209#Comment_82056209

If you try to pay most of the cards I have ever had online via the provider's app/site, they usually won't allow you to make a payment that puts the account in credit. If the refund is received first, the subsequent payment of the statement balance when you know the account balance is then deliberately putting the account in credit, often against T&C's.

If you make the payment before the refund, or before knowledge of it, that's a different scenario.

mta999

Well certainly what Barclays are saying is.. for example supposing you have a statement balance of 2000 with a minimum payment of 125

after this statement is produced you then get a refund of 1900

you still have to pay the minimum payment which would be 125 but this would put the card into positive territory so Barclays say you must only pay 100 - but you still have to pay it despite the fact that 1900 has hit your account since the statement date.

garybaldy

It's certainly complicated as to what you need to factor in: minimum amount, part payment, full payment, whilst taking into account any refunds that have reached your account before the due date.

What I can say is that with both M&S and Capital One I had refunds come through on each card between the statement date and due date this month. I paid off the amount owed at the due date in full and no interest was charged.

As far as can tell, if your account balance is zero or less on the due date you are deemed to have paid in full. But be aware that even with faster payments it can take at least a day for your payment(s) to reach your account. I tend to pay my bill two working days before the due date to be on the safe side.

surreysaver

Some cards will use a refund as a payment, others will take it off that month's purchases.

As we still don't know the card provider, we don't know

retiredbanker1

I can only speak for Halifax Clarity - recently had a balance of £700 odd but after statement date one transaction was credited back, bringing in the balance down to £600.

When coming to pay the bill Halifax would not let me pay more than the balance as at today ie £600 which was fine by me.

mta999

Yes but the question is if you hasn't paid anything at all would that 100 credits have been counted as your minimum payment

garybaldy

https://forums.moneysavingexpert.com/discussion/comment/82059380#Comment_82059380

Probably not. The minimum payment is calculated on the statement date and is typically 5% of the statement balance. If credits or refunds affected the minimum payment then the credit card company would need to recalculate the minimum amount and advise you of the new figure, which would increase their admin costs.

I think we're looking at too many variables tbh. My original question related to clearing the whole balance to avoid interest, but also to avoid overpaying in the event of a refund landing in my account before the due date.