Balance due after a refund

[lobo76]

Hey all, I got a large refund for a flight on my card and when going to pay this months balance due does not reflect the refund and is still asking for the original balance. Paying this would put the account into a positive balance by over $1k so I'd rather not do this but I don't want to risk getting in the trap of not having paid the balance due and losing the interest free days etc.

Any idea if I can just pay the balance due - refund amount?

 

[lovestotravel]

I have always paid the balance

 

[ChrisFlyer]

If you pay your card back so that the account balance is $0 on the due date, you won't be charged any interest etc (how could you - there would be no balance owing). I've done it before when a large refund came through after the statement was issued.

 

[lobo76]

If you pay your card back so that the account balance is $0 on the due date, you won't be charged any interest etc (how could you - there would be no balance owing). I've done it before when a large refund came through after the statement was issued.

I'm more worried about the 55 days interest free from the next period

 

[markis10]

Give them a call to confirm the current payout figure, which they are obliged to provide under law, that will answer your question definitively.

 

[PLC]

If you want to avoid paying interest then you will need to pay down to $0 the amount on the statement - ignoring the refund. In my experiences refunds after the statement is issued is not considered a type of payment by the institution...it is simply a credit separately applied to the balance. So yes, you will end up in credit.

 

[lobo76]

Give them a call to confirm the current payout figure, which they are obliged to provide under law, that will answer your question definitively.

Arrr, not feeling too well today so I'm all crotchety wanted to avoid calling them and the usual rise in blood pressure

Oh well I guess I'd better to be sure

Thanks for the input all.

 

[ChrisFlyer]

To clarify, I've done this before on my Amex, and they advised that although refunds aren't usually considered 'payments', if a refund plus an amount paid equal to less than the closing balance takes the live account balance to $0, it's considered to be paid in full (and allows for any subsequent interest free days). Though for the system to pick this up, you need to make sure that your balance is cleared to $0 (or a positive balance in your favour) before you charge anything else to the card. If you don't let the system pick up the $0 balance, that's where you'll have problems. Though if you have direct debits set up on the account, or you can't go for a couple of days without using that card (or you can't be bothered calling them to clarify), then yes, it's best to just pay the full closing balance to be sure!

 

[lobo76]

OK so by way of closing out the topic. I recant my misgivings about calling the center. Things seem to have improved there!
Got through after a 2 min hold. The agent was very nice and helpful

The long and short of it is that she told me that if I pay the balance carried forward - the refund that my card will be paid up to date and I'll get my 55 days interest free. I'm hoping she's right because if this goes pear shaped it'll be the final nail in the Amex coffin for me

 

[exp1k]

I always only pay balance minus refunds on the due date and never had any problems, but that is on a charge card.
The balance after payment is never zero as there are always charges between the statement date and the due date.

 

[Diesellife]

Once you receive the refund, go online and the balance due should be updated as well. Just pay whatever it shows online and no interest / penalty will be charged.
Done that a dozen of times and never had a problem.

That is for a charge card tho.

 

[lobo76]

Once you receive the refund, go online and the balance due should be updated as well. Just pay whatever it shows online and no interest / penalty will be charged.
Done that a dozen of times and never had a problem.

That is for a charge card tho.

Must be different for the Charge. Plat Edge doesn't reflect the refund in the balance due.

 

[Diesellife]

Must be different for the Charge. Plat Edge doesn't reflect the refund in the balance due.

Possibly... Credit and charge card are two different beasts. Eg charge card has payment grace period (>14 days but <28 days) but credit card doesn't.