topic Re: Question about payment after refund is received in Credit Cards

Question about payment after refund is received

Remedios — Fri, 30 Dec 2022 16:12:18 GMT

I think I know this one but...

My daughter received a notice from school she had to pay $1800 for various supplies and lab fees. She went ahead and paid it right away.

A week later, fun starts with "oops, you didn't have to pay, error, blah, we will issue a refund by 01/23/2023

So, if refund is not completed prior to statement date, she would still need to pay entire amount then ask for issuer for refund, correct?

Reason I'm asking is her billing cycle ends on 1/20, so there is a chance card will be refunded right after the statement cuts.

She used her Discover card, I guess she can ask via chat, getting her to make a call is nearly impossible

It's early, not enough coffee, hopefully my rambling made sense

I think I put this thread in the right forum 🤷‍♀️

Re: Question about payment after refund is received

coldfusion — Fri, 30 Dec 2022 16:24:42 GMT

As for needing coffee, I think I can help.

How is the refund going to be issued? Will school cut a check and send to AdultGirlChild, or will they credit the total amount back on the card (expected)?

Re: Question about payment after refund is received

Remedios — Fri, 30 Dec 2022 16:30:06 GMT

Refund will be issued to her Discover card

Re: Question about payment after refund is received

coldfusion — Fri, 30 Dec 2022 16:44:24 GMT

@Remedios wrote:
Refund will be issued to her Discover card

Assuming that the school meets their committment, worst case should be that the statement will report the $1800 charge, refund will be processed, next statement will reflect a $0 balance.

She should keep tabs on the account online regularly for the next 2 months. She should be able to see that the refund is processing and then processed with balance adjusted properly well before the next due date, and to make sure that Discover doesn't do something stupid like try to assess trailing interest or conflate a valid refund with applying cashback to a balance.

Re: Question about payment after refund is received

ptatohed — Fri, 30 Dec 2022 22:31:21 GMT

My advice would be to pay in full by the due date, even if you are told a refund is coming. This is the only way to guarantee there will be no interest charge or late fee. I would not feel comfortable relying on any given date that you are told the refund will happen. If the refund happens before the due date, great. Otherwise I'd recommend PIF.

She'll have a negative balance if/when the refund comes in after PIF. I have never had a neg balance that large so I don't know if she can request a check from Discover or if she is to just continue spending until the negative balance is positive. I'd probably just leave the neg bal but I'm sure a college student would want the cash.

Good luck.

Re: Question about payment after refund is received

FireMedic1 — Fri, 30 Dec 2022 23:10:56 GMT

@Remedios

"If you have a rewards credit card (that is a credit card where you earn cash back or miles points when you spend) any credit card rewards you earned on a purchase that was returned, such as cash back rewards or miles, will not be awarded after your refund is processed.

Maybe you’ll like to keep your rewards. You can ask the merchant to refund you in the form of store credit. However, that means you will still have to pay for the purchase on your credit card."

https://www.discover.com/credit-cards/card-smarts/what-is-a-credit-card-refund/

Re: Question about payment after refund is received

mgood — Sat, 31 Dec 2022 00:06:16 GMT

@Remedios wrote:
I think I put this thread in the right forum 🤷‍♀️

If it's in the wrong forum, @Remedios will be along shortly to move it.
. . . oh, wait

Re: Question about payment after refund is received

ptatohed — Sat, 31 Dec 2022 00:35:46 GMT

@FireMedic1 wrote:
@Remedios
"If you have a rewards credit card (that is a credit card where you earn cash back or miles points when you spend) any credit card rewards you earned on a purchase that was returned, such as cash back rewards or miles, will not be awarded after your refund is processed.
Maybe you’ll like to keep your rewards. You can ask the merchant to refund you in the form of store credit. However, that means you will still have to pay for the purchase on your credit card."
https://www.discover.com/credit-cards/card-smarts/what-is-a-credit-card-refund/

That advice from Discover doesn't make sense to me. They are basically saying if you want to keep your rewards now but lose them later, ask for store credit. Unless lab fees happens to qualify for 5% CB this quarter but only 1% next quarter, what's the point in store credit which won't earn you any CB when you go to use it?

Re: Question about payment after refund is received

FinStar — Sat, 31 Dec 2022 00:52:28 GMT

@ptatohed wrote:
@FireMedic1 wrote:
@Remedios
"If you have a rewards credit card (that is a credit card where you earn cash back or miles points when you spend) any credit card rewards you earned on a purchase that was returned, such as cash back rewards or miles, will not be awarded after your refund is processed.
Maybe you’ll like to keep your rewards. You can ask the merchant to refund you in the form of store credit. However, that means you will still have to pay for the purchase on your credit card."
https://www.discover.com/credit-cards/card-smarts/what-is-a-credit-card-refund/
That advice from Discover doesn't make sense to me. They are basically saying if you want to keep your rewards now but lose them later, ask for store credit. Unless lab fees happens to qualify for 5% CB this quarter but only 1% next quarter, what's the point in store credit which won't earn you any CB when you go to use it?

I don't think that's the point of this discussion. Rewards really weren't in question. Lemme re-read it again 🤔

Re: Question about payment after refund is received

Remedios — Sat, 31 Dec 2022 01:16:33 GMT

Question is, if statement on the 20th says she owes $1800 then couple of days later card receives credit from school for $1800, is she supposed to pay statement balance then ask Discover for refund or does the balance "adjust" once credit is issued?

It's not a big deal about paying it, just trying to avoid additional complications.

She can just have it sit on her card as a credit but it would sit there for a very long time because she's mostly using her CSP.

She can chat Discover and ask, but I'm always 😱 when I have to take CSRs word and my daughter really doesn't like to make calls.

And yes, she used discover 😐

Re: Question about payment after refund is received

Remedios — Sat, 31 Dec 2022 01:17:16 GMT

@mgood wrote:
@Remedios wrote:
I think I put this thread in the right forum 🤷‍♀️
If it's in the wrong forum, @Remedios will be along shortly to move it.
. . . oh, wait

Gosh, don't summon her!

Re: Question about payment after refund is received

mgood — Sat, 31 Dec 2022 01:34:11 GMT

@Remedios wrote:
Question is, if statement on the 20th says she owes $1800 then couple of days later card receives credit from school for $1800, is she supposed to pay statement balance then ask Discover for refund or does the balance "adjust" once credit is issued?

So this month's statement would show an $1800 balance, that would be paid shortly thereafter, well before the due date, and next month's statement will be back to $0 balance. I don't see the problem unless you're trying to play AZEO or something.

Re: Question about payment after refund is received

FinStar — Sat, 31 Dec 2022 01:35:54 GMT

@Remedios wrote:
Question is, if statement on the 20th says she owes $1800 then couple of days later card receives credit from school for $1800, is she supposed to pay statement balance then ask Discover for refund or does the balance "adjust" once credit is issued?

It's not a big deal about paying it, just trying to avoid additional complications.
She can just have it sit on her card as a credit but it would sit there for a very long time because she's mostly using her CSP.

She can chat Discover and ask, but I'm always 😱 when I have to take CSRs word and my daughter really doesn't like to make calls.

And yes, she used discover 😐

My experience with Discover is if the sole transaction (and only balance) on the card cuts, let's say with the similar cycle date as yours (Dec 20th), a refund is processed by the vendor and gets credited back on the card say on Jan 5th, then the balance becomes $0 and there is no payment due. The system will adjust to reflect with "No Payment Due" under the Next Payment Due section -- if there was no other balance during the current cycle.

Re: Question about payment after refund is received

Remedios — Sat, 31 Dec 2022 01:38:46 GMT

@FinStar wrote:
@Remedios wrote:
Question is, if statement on the 20th says she owes $1800 then couple of days later card receives credit from school for $1800, is she supposed to pay statement balance then ask Discover for refund or does the balance "adjust" once credit is issued?

It's not a big deal about paying it, just trying to avoid additional complications.
She can just have it sit on her card as a credit but it would sit there for a very long time because she's mostly using her CSP.

She can chat Discover and ask, but I'm always 😱 when I have to take CSRs word and my daughter really doesn't like to make calls.

And yes, she used discover 😐
My experience with Discover is if the sole transaction (and only balance) on the card cuts, let's say with the similar cycle date as yours (Dec 20th), a refund is processed by the vendor and gets credited back on the card say on Jan 5th, then the balance becomes $0 and there is no payment due. The system will adjust to reflect with "No Payment Due" under the Next Payment Due section -- if there was no other balance during the current cycle.

Thank you! (Even if iTyped)

Re: Question about payment after refund is received

ocheosa — Sat, 31 Dec 2022 01:48:08 GMT

@FinStar wrote:
@Remedios wrote:
Question is, if statement on the 20th says she owes $1800 then couple of days later card receives credit from school for $1800, is she supposed to pay statement balance then ask Discover for refund or does the balance "adjust" once credit is issued?

It's not a big deal about paying it, just trying to avoid additional complications.
She can just have it sit on her card as a credit but it would sit there for a very long time because she's mostly using her CSP.

She can chat Discover and ask, but I'm always 😱 when I have to take CSRs word and my daughter really doesn't like to make calls.

And yes, she used discover 😐
My experience with Discover is if the sole transaction (and only balance) on the card cuts, let's say with the similar cycle date as yours (Dec 20th), a refund is processed by the vendor and gets credited back on the card say on Jan 5th, then the balance becomes $0 and there is no payment due. The system will adjust to reflect with "No Payment Due" under the Next Payment Due section -- if there was no other balance during the current cycle.

^^^This has been my experience as well.

Off topic: One interesting DP about disco's cb that i've experienced. If you earn 5% on a category charge and that charge is refunded, they've only ever clawed back 1%. As with everything credit, YEMV.

Hope all MyFico Fam are enjoying the Holiday Season! And Wishing All a Happy New Year!

Re: Question about payment after refund is received

ptatohed — Sat, 31 Dec 2022 09:17:38 GMT

@FinStar wrote:
@ptatohed wrote:
@FireMedic1 wrote:
@Remedios
"If you have a rewards credit card (that is a credit card where you earn cash back or miles points when you spend) any credit card rewards you earned on a purchase that was returned, such as cash back rewards or miles, will not be awarded after your refund is processed.
Maybe you’ll like to keep your rewards. You can ask the merchant to refund you in the form of store credit. However, that means you will still have to pay for the purchase on your credit card."
https://www.discover.com/credit-cards/card-smarts/what-is-a-credit-card-refund/
That advice from Discover doesn't make sense to me. They are basically saying if you want to keep your rewards now but lose them later, ask for store credit. Unless lab fees happens to qualify for 5% CB this quarter but only 1% next quarter, what's the point in store credit which won't earn you any CB when you go to use it?
I don't think that's the point of this discussion. Rewards really weren't in question. Lemme re-read it again 🤔

Re: Question about payment after refund is received

tcbofade — Sat, 31 Dec 2022 11:32:39 GMT

@FinStar wrote:
@Remedios wrote:
Question is, if statement on the 20th says she owes $1800 then couple of days later card receives credit from school for $1800, is she supposed to pay statement balance then ask Discover for refund or does the balance "adjust" once credit is issued?

It's not a big deal about paying it, just trying to avoid additional complications.
She can just have it sit on her card as a credit but it would sit there for a very long time because she's mostly using her CSP.

She can chat Discover and ask, but I'm always 😱 when I have to take CSRs word and my daughter really doesn't like to make calls.

And yes, she used discover 😐
My experience with Discover is if the sole transaction (and only balance) on the card cuts, let's say with the similar cycle date as yours (Dec 20th), a refund is processed by the vendor and gets credited back on the card say on Jan 5th, then the balance becomes $0 and there is no payment due. The system will adjust to reflect with "No Payment Due" under the Next Payment Due section -- if there was no other balance during the current cycle.

^ This.

IF the school sends the refund to Discover.

For both of my daughters, any over payments were returned to the student.