Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.




3544 posts

Uber Geek
+1 received by user: 121

Trusted

Topic # 144177 9-May-2014 18:01
Send private message

Quick question.

Let's say you are billed for $500 on your credit card.

In the next month, you get a $100 refund for a purchase you had made in the previous statement (which made up the $500). Is the refund therefore like a payment you've made towards the $500 bill and so you should only pay $400?

Filter this topic showing only the reply marked as answer View this topic in a long page with up to 500 replies per page Create new topic
 1 | 2 | 3
19282 posts

Uber Geek
+1 received by user: 2600
Inactive user


  Reply # 1040986 9-May-2014 18:06
Send private message

Check your credit card terms and conditions but I suspect refund is not a actual payment

9510 posts

Uber Geek
+1 received by user: 2882

Trusted
Subscriber

  Reply # 1040999 9-May-2014 18:26
2 people support this post
Send private message

Whichever option works best from your point of view....is almost certainly not the answer...!!





 
 
 
 


3743 posts

Uber Geek
+1 received by user: 205

Trusted

  Reply # 1041004 9-May-2014 18:32
One person supports this post
Send private message

Yes, it's a form of payment as $100 has been credited towards your account.




Do whatever you want to do man.

  

854 posts

Ultimate Geek
+1 received by user: 125


  Reply # 1041009 9-May-2014 18:41
Send private message

heavenlywild: Quick question.

Let's say you are billed for $500 on your credit card.

In the next month, you get a $100 refund for a purchase you had made in the previous statement (which made up the $500). Is the refund therefore like a payment you've made towards the $500 bill and so you should only pay $400?


I went through this with Westpac (although on a much larger scale), a refund doesn't count as a payment for that month, it makes zero sense in my opinion, thankfully I was able to compromise somewhat with them which let me move the refund (in excess of a grand) back into an interest bearing account without the risk of cash advance fees/cash advance interest (in the event of a slight miscalculation).

Unfortunately the wording on the credit card statements (at least Westpac's) is extremely poor and implies potentially otherwise, I don't think they've changed this yet.

13078 posts

Uber Geek
+1 received by user: 2156

Trusted
Subscriber

  Reply # 1041020 9-May-2014 19:02
One person supports this post
Send private message

IMHO It reverses part of the transaction, it's not a payment.




AWS Certified Solution Architect Professional, Sysop Administrator Associate, and Developer Associate
TOGAF certified enterprise architect
Professional photographer


20180 posts

Uber Geek
+1 received by user: 3782

Trusted
Subscriber

  Reply # 1041030 9-May-2014 19:07
Send private message

Its certainly not a payment. Dont know why you would expect otherwise?




Richard rich.ms

2471 posts

Uber Geek
+1 received by user: 910

Subscriber

  Reply # 1041074 9-May-2014 19:49
One person supports this post
Send private message

No, it's not a payment, but given most credit card providers calculate the minimum payment as a percentage of the balance, the refund would reduce the balance owing and thus reduce your required payment.




Windows 7 x64 // i5-3570K // 16GB DDR3-1600 // GTX660Ti 2GB // Samsung 830 120GB SSD // OCZ Agility4 120GB SSD // Samsung U28D590D @ 3840x2160 & Asus PB278Q @ 2560x1440
Samsung Galaxy S5 SM-G900I w/Spark

637 posts

Ultimate Geek
+1 received by user: 2

Trusted

  Reply # 1041076 9-May-2014 19:58
Send private message

I think it will depend on the card issuer's policy, but my experience has been that refunds do apply to reducing the current outstanding balance. In fact on a number of cards, Refunds/Credits/Payments are shown in the same area.

To give a recent example from my March American Express bill:
Previous balance: $4314.15
Payments/credits: $4355.48 (+$41.33 in random refunds)
New Charges: $6793.29 
New balance to pay: $6751.96 (new charges - $41.33)

gzt

8999 posts

Uber Geek
+1 received by user: 1228


  Reply # 1041084 9-May-2014 20:04
Send private message

timmmay: IMHO It reverses part of the transaction, it's not a payment.

+1. Else you could keep an account going forever meeting t&c's just on the 'credits' from refunds. Basic accounting fail.

But.. there may be more complex scenarios where credit of interest already paid etc could apply. But then that is money you have paid them so kind of obvious I guess.



3544 posts

Uber Geek
+1 received by user: 121

Trusted

  Reply # 1041103 9-May-2014 20:33
Send private message

It's interesting that even asking the bank, they aren't too sure. 

Here's another one. What if your credit limit was $5000 but because you wanted to buy something that would require $6000 say, you put in $1000 towards your credit card. Does that then allow you spend $6000?  Hehehe sorry just playing devils advocate here.

637 posts

Ultimate Geek
+1 received by user: 2

Trusted

  Reply # 1041105 9-May-2014 20:38
Send private message

heavenlywild: It's interesting that even asking the bank, they aren't too sure. 

Here's another one. What if your credit limit was $5000 but because you wanted to buy something that would require $6000 say, you put in $1000 towards your credit card. Does that then allow you spend $6000?  Hehehe sorry just playing devils advocate here.

Yes, that works just fine (although subject to issuer caveats I am sure). I used to have to do that before banks in NZ stopped being ridiculously conservative with credit limits.

2471 posts

Uber Geek
+1 received by user: 910

Subscriber

  Reply # 1041107 9-May-2014 20:40
Send private message

heavenlywild: It's interesting that even asking the bank, they aren't too sure. 

Here's another one. What if your credit limit was $5000 but because you wanted to buy something that would require $6000 say, you put in $1000 towards your credit card. Does that then allow you spend $6000?  Hehehe sorry just playing devils advocate here.


Yes, a credit card can be put into credit, so absolutely you can do this.




Windows 7 x64 // i5-3570K // 16GB DDR3-1600 // GTX660Ti 2GB // Samsung 830 120GB SSD // OCZ Agility4 120GB SSD // Samsung U28D590D @ 3840x2160 & Asus PB278Q @ 2560x1440
Samsung Galaxy S5 SM-G900I w/Spark

2687 posts

Uber Geek
+1 received by user: 1136


  Reply # 1041114 9-May-2014 20:47
Send private message

heavenlywild: It's interesting that even asking the bank, they aren't too sure. 

Here's another one. What if your credit limit was $5000 but because you wanted to buy something that would require $6000 say, you put in $1000 towards your credit card. Does that then allow you spend $6000?  Hehehe sorry just playing devils advocate here.


Yes.  Think of your credit card as just another bank account, with a built in overdraft. 




Always be yourself, unless you can be Batman, then always be the Batman



637 posts

Ultimate Geek
+1 received by user: 2

Trusted

  Reply # 1041115 9-May-2014 20:47
Send private message

Inphinity:
heavenlywild: It's interesting that even asking the bank, they aren't too sure. 

Here's another one. What if your credit limit was $5000 but because you wanted to buy something that would require $6000 say, you put in $1000 towards your credit card. Does that then allow you spend $6000?  Hehehe sorry just playing devils advocate here.


Yes, a credit card can be put into credit, so absolutely you can do this.

In fact years ago this used to be the most cost effective way to withdraw cash overseas: for many banks, a card in credit wasn't assessed any cash advance fees (including ATM withdrawal fees).

ISTR most banks stopped this around 2005. Pity.

997 posts

Ultimate Geek
+1 received by user: 86


  Reply # 1041297 10-May-2014 12:06
Send private message

Most answers say not a payment.

So if you brought $500 on card from one store, then returned it and got $500 credited back to card so balance is now $0 on card, then the credit card company would still expect payment of $500 even though there is currently nothing owing on card?

Seems a strange one.


 1 | 2 | 3
Filter this topic showing only the reply marked as answer View this topic in a long page with up to 500 replies per page Create new topic



Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:





News »

FUJIFILM introduces X-E3 mirrorless camera with wireless connectivity
Posted 18-Sep-2017 13:53


Vodafone announces new plans with bigger data bundles
Posted 15-Sep-2017 10:51


Skinny launches phone with support for te reo Maori
Posted 14-Sep-2017 08:39


If Vodafone dropping mail worries you, you’re doing online wrong
Posted 11-Sep-2017 13:54


Vodafone New Zealand deploy live 400 gigabit system
Posted 11-Sep-2017 11:07


OPPO camera phones now available at PB Tech
Posted 11-Sep-2017 09:56


Norton Wi-Fi Privacy — Easy, flawed VPN
Posted 11-Sep-2017 09:48


Lenovo reveals new ThinkPad A Series
Posted 8-Sep-2017 14:37


Huawei passes Apple for the first time to capture the second spot globally
Posted 8-Sep-2017 10:45


Vodafone initiative enhances te reo Maori pronunciation on Google Maps
Posted 8-Sep-2017 10:40


Voyager Internet expand local internet phone services company with Conversant acquisition
Posted 6-Sep-2017 18:27


NOW Expands in to Tauranga
Posted 5-Sep-2017 18:16


Windows 10 Fall Creators Update coming Oct. 17
Posted 4-Sep-2017 14:10


Garmin introduce Garmin vivoactive 3
Posted 1-Sep-2017 18:38


Kiwibank wastes $90 million on software – Reseller News
Posted 1-Sep-2017 13:45



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.