PayPal Mastercard Refunds (Cashback Question)

[MoneyBurns]

Good morning all,

I hope everyone is well and happy. ^^

I have a question regarding those who have experience with PayPal Mastercard's refund and how cashback earned works.

I bought a plane ticket/hotel package for around $7,200. Due to the who pandemic going on, I was able to cancel the flight and hotel without any return fees. I just got part of the refund today and it seems it didn't take out my reward dollars (yet). Will they take it out during my next statement? If that's true, then it'll be around -$144.00 and I don't know how Synchorny would feel about that. Lol. Anyone have any experience with refunds on this card?

Thnaks in advance.

Take care, be well.

[Anonymous]

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@MoneyBurns wrote:

Good morning all,

I hope everyone is well and happy. ^^

I have a question regarding those who have experience with PayPal Mastercard's refund and how cashback earned works.

I bought a plane ticket/hotel package for around $7,200. Due to the who pandemic going on, I was able to cancel the flight and hotel without any return fees. I just got part of the refund today and it seems it didn't take out my reward dollars (yet). Will they take it out during my next statement? If that's true, then it'll be around -$144.00 and I don't know how Synchorny would feel about that. Lol. Anyone have any experience with refunds on this card?

Thnaks in advance.

Take care, be well.

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I think the rewards are calculated at statement close, so when that happens those $144 will be removed so, unless you have spent a lot elsewhere, the balance will go negative.   Normally that shouldn't be an issue, but if this amount is much more than your usual (so it will take several months to become positive) ....  

[MoneyBurns]

So if it's negative would Synchrony just keep it at negative until I charge enough till it goes back to $0? Or do they put a balance on the card (charge the card to make rewards to $0)? Thanks!

[Anonymous]

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@MoneyBurns wrote:

So if it's negative would Synchrony just keep it at negative until I charge enough till it goes back to $0? Or do they put a balance on the card (charge the card to make rewards to $0)? Thanks!

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Issuers generally just keep it negative.   We had a Discover IT Miles with a (very small) negative for a few years.   

I don't know what Sync would do if you closed the card, but my guess is you should be OK leaving it.    Now this could impact what card you want to use, getting rewards rather than paying off a debt.   Just depends how long it would take you to make this positive again

[imaximous]

I suppose CCs have different policies for those scenarios. 

My Apple Card actually added the cash back amount as a transaction so I have to pay it back. It just happened this month so I'll have a balance of $110 on my statement to pay off. 

[MoneyBurns]

Oh wow. I guess I'll wait till the next statement to see what happens. I just hope no AA will come of it.

[Anonymous]

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@imaximous wrote:

I suppose CCs have different policies for those scenarios. 

My Apple Card actually added the cash back amount as a transaction so I have to pay it back. It just happened this month so I'll have a balance of $110 on my statement to pay off. 

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Wow!  I've never heard of that on a card.   Anyone here had it happen  on a different card?   Certainly makes sense from the issuer viewpoint, and I guess can be justified on a cashback card where the value is undisputed.

[imaximous]

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@Anonymous wrote:

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@imaximous wrote:

I suppose CCs have different policies for those scenarios. 

My Apple Card actually added the cash back amount as a transaction so I have to pay it back. It just happened this month so I'll have a balance of $110 on my statement to pay off. 

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Wow!  I've never heard of that on a card.   Anyone here had it happen  on a different card?   Certainly makes sense from the issuer viewpoint, and I guess can be justified on a cashback card where the value is undisputed.

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@Anonymous This is the only time I've seen this.
I'm obviously not complaining because they're just trying to get their money back after the reversal was processed. 

I also think Goldman manages this differently because any earned cashback is automatically added to Apple Cash, which is sort of like a reloadable gift card and separate from the Apple Card. With any other CC, rewards points or cashback don't go anywhere unless you use them. Goldman pays out right after a transaction posts, so they probably don't have another way to get that money back unless they add it to your statement.