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credit card payment question

squarebasketball
Regular Contributor

credit card payment question

lets say my statment cut with a 1K balance. if i return an item that was $400 for example, would I still need to make a $1000 payment on the card's due date? thanks!

Message 1 of 9
8 REPLIES 8
Singsonbing
Regular Contributor

Re: credit card payment question

It depends on when the returned item credits to your account. If it's not back on your card on the due date you need to pay the full amount.
Message 2 of 9
squarebasketball
Regular Contributor

Re: credit card payment question

thank you very much!

Message 3 of 9
TruthHurts87
Regular Contributor

Re: credit card payment question

In my experience, yes you do still need to make the $1,000 payment if you're paying in full or the minimum payment due. The $400 return credit will be deducted from your balance during the next billing cycle. I've never seen it being applied towards the minimum payment due or towards any payment for that matter, on any of my accounts.
Message 4 of 9
Singsonbing
Regular Contributor

Re: credit card payment question

If all he has is a 1000 balance and he intends to pay that in full then if the return credits to his account prior to the due date he does not have to pay 1000... that would make them owe him money next month... which works fine if he plans on spending enough to use up the credit but if he doesnt... his money is tied up with the company till they refund it.

You are correct though it wouldn't count if he is just making the minimum payment. Say the payment is $35... he would still need to pay the 35 despite having the refund credit.
Message 5 of 9
RobertEG
Legendary Contributor

Re: credit card payment question

The Fair Credit Billing Act requires the seller to promptly notice the credit card issuer of the return of goods.

See FCBA 166, Prompt Notification of Returns.

However, there is no explicit period, and the statute provides for some delay.

Clearly, the creditor cannot revise their statement until they receive the notification from the merchant.

 

Until a new billing is issued, the old billing statement would apply.

 

If you wish to receive a revised statement before paying, I would contact the creditor and explicitly obtain their agreement to do so.

Otherwise, you may end up with a late payment........

Message 6 of 9
Singsonbing
Regular Contributor

Re: credit card payment question

How does a late payment apply here? The op is talking about paying the full balance not just making minimum payment.

I've had returns go to credit cards a ton of times and they've never charged me interest on amounts posted to the account as refunds prior to the date the interest started accruing.

Not to mention when the refund credited my available balance increased by the refunded amount as well. They dont care where the money comes from as long as they get their money.
Message 7 of 9
jaimeylynn
Established Member

Re: credit card payment question

You can subtract it from statement balance (as long as it posts before due date) but not minimum due if you still have a balance after the credit gets applied. Let's say your statement cycles with a $5k balance, after it cycles you continue making purchases bringing you to $10k total acct balance , but BEFORE your due date a credit posts for $3k, (giving you a total account balance of $7k) you can submit your payment for $2k and would be considered PIF for the statement balance (and avoid being billed the accrued interest on those purchases)
Message 8 of 9
Janus
Senior Contributor

Re: credit card payment question

Generall when I'm face with this type of situation, I deduct the "credit" amount from my total balance. Then I pay that amount by the due date, as long as it's over the minimum payment that is. Regardless of anything else, the minimum payment due must be met by the due date to avoid lates etc. However, if it's a "Charge Card" and needs statement balance PIF by the due date. Then you'll need to pay the that amount due, if the "credit" will not post by the due date. Then the credit will just be applied to your total balance, if higher than the statement balance. Or as said above you'll have a credit balance towards future charges, and then eventually a check will be sent if gone unused.

 

 






Message 9 of 9
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