Credit card refund question

[RachaelC]

Originally Posted by 400ixl

You are thankfully fortunate, there was a thread recently where someone had to chase getting their credit record fixed as they had assumed the positive balance would act as a payment for a purchase and it didn't.

Most do not do it that way. Amex may be the exception and it is Visa and Mastercard who don't.

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A positive balance has meant I’ve not had to pay a bill for both my Amex cards and my Halifax card, but I’m not sure if that was “ok” as it covered the bill in full. I have direct debits set up to pay off in full each month.

I think if there’s a balance outstanding then a refund doesn’t count as a payment, so they could be 2 slightly different things.

[munmun]

Originally Posted by 400ixl

You are thankfully fortunate, there was a thread recently where someone had to chase getting their credit record fixed as they had assumed the positive balance would act as a payment for a purchase and it didn't.

Most do not do it that way. Amex may be the exception and it is Visa and Mastercard who don't.

See more...

This is really interesting as this month I had refund on my virgin CC and it was used to pay my bill, there was still so e refund left after the bill was paid. No interest paid remaining positive balance will be used for next months bill.

I havent paid interest one credit card in many many years, cant remember last time and I never remove the positive balances, never been asked to, never had any problems.

[tspill]

Originally Posted by 400ixl

Be careful leaving for 2 reasons

1. that balance doesn't count as a payment of the balance in the future, you still have to make a positive transfer into the account each month to pay that off or you will be charged interest and have your credit history adversely affected.
2. purchases made using a positive balance do not always have the same level of protection such as Section 75 etc.

Best to get it transferred back out to your credit account.

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On point 1 - That wasn't the case with my AmEx. I just ran the positive balance down over several months, making no payments. Each bill has a zero "payment required". I wasn't charged anything.

[tspill]

Originally Posted by 400ixl

You are thankfully fortunate, there was a thread recently where someone had to chase getting their credit record fixed as they had assumed the positive balance would act as a payment for a purchase and it didn't.

Most do not do it that way. Amex may be the exception and it is Visa and Mastercard who don't.

See more...

Then another good reason to use AmEx.

[400ixl]

Not for a retailer who pays an extortionate rate for Amex fees.

Also the number of places that refuse to take them is also a pain in the backside. I always have to carry a visa alongside my works Amex.

But yes for this rare example you could be right.

[Dougie]

I am the same, had a zero balance and airbnb refunded £1800 on to my card. I contacted them ( CC Company) and they just asked for the details of the account i wanted it transferred to. They moved it within 24hrs, no problem.

[7SeasSailor]

Some cards have a maximum limit that you can be in credit and will contact you and ask you to remove it from your account.

[Ryles]

I received my refund from Virgin this week. So was £1800 in credit. Called my CC company and asked for it to be refunded to my bank account to be told it may take 5 weeks to refund me! So I’ve waited 3 months for my refund and now have to wait another month at least. I’m with Sainsburys finance. One of the worst companies I’ve ever dealt with!

[Gill H]

Originally Posted by tspill

With the Halifax, you can just transfer the positive balance to your bank account on line.
With AmEx you have to phone.

Different cards manage it in different ways.

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Ours is John Lewis which is Mastercard.

Thanks all

[Florida Gator]

I’ve had my refunds onto my amex card and have had a positive balance with no issues at all that I have been aware of. The account has just said Zero payment required.