How do returns work on a credit card?

[Bubbhye]

I got a credit card to improve my credit rating.

I purchased some curtains but they were not right for the room.

I sent them back with Evri but it's been over a week and is still showing as 'on way back'

When I went to the curtain shops FAQ it says ever can take 21 days to return then allow 14 days for refund.

What do I do about making sure I don't miss any payments on the CC? Do I just pay the whole thing off? But what happens when the refund is processed?

Have you had the credit card statement yet? You usually get a certain amount of days before the payment is due so the curtains may get refunded before the payment due date. If you pay the bill and then get refunded then you would end up in credit on your card account. The credit card may then be able to send the credit back to your bank account

@Bubbhye you sound similar to me, only got a cc due to credit footprint.

Yes I think there is a cut off point for charge as @dementedpixie says, phone them to make sure.

Have you got the app set up on your phone? It would be easier to check

Yes I have the app and haven't had a statement yet.

So I need to wait for the statement before I make a payment?

I'm really conscious about not fucking it up 😂

Wait for the statement. It will have a minimum payment detailed on it and when to make the payment by. If you pay it in full by that date then you usually avoid interest charges. If you pay less than the full amount you will be charged interest (unless its a 0% interest card/purchase)

Which card is it?
The T&Cs should give info about the interest rate and how to avoid getting extra charges
Do you intend paying off in full each time? If so, you could set up a direct debit and it will automatically make the payment for you when it's due

@dementedpixie yes I have a dd set up so I never fuck up. I was really exasperated when I paid off some debt (only £600) then my rating went down so had to get cc to stay on the grid!

@Bubbhye slightly different issue here as you need a refund, sounds a pain that it's taking longer than anticipated. Don't worry about cc but you might have to wait a few days unless you want to phone cc company and reverse the charge

Yes, it's a 35% card so I need to pay in full each time.

But my issue is if I pay £140 for the curtains that have been returned how do I get the cash paid from my debit card back?

It goes back on to your credit card so off your bill iykwim

If you've bought curtains for £140 and shopping for £200 then you'll get -140 leaving you £60 to pay.

BUT if it's after your statement you have to pay the £140 and wait for it to come back on your next statement

Once paid, the refund will show as a credit on your statement. Usually people will be making more purchases on the card and the credit will be offset against those debits.

If you're not going to be making any more purchases and want the credit paid to you, then contact the credit card company and ask for that to happen.

If you pay off the credit card and then get your refund than you will have a negative balance, essentially meaning that the credit card company owes you money. You would then have to contact them to get the money back. Alternatively you can just spend on the credit card and the balance will go back towards zero.

I have a £500 limit. Curtains were 140.

If the return goes through before the payment is due, my current limit of 360 will go back up to 500 and I've paid nothing for the curtains.

If the payment is due, I have to pay £140 cash from my debit card then my limit goes back to 500 but when the return goes through, how do I get the £140 cash back into my debit account? Will the limit go upto 640? I don't want the extra credit. I want the cash back in my current account if that makes sense?

Ah thankyou.

That makes sense.

Sorry I was typing above out as it was being answered!

The other option is to use your credit card for the next month and keep a tally so you know when you've 'hit' your £140, if you want to keep the CC going for a bit longer

I would always pay the minimum amount if the credit card, even if that means you’re actually in credit when you gave the refund.

I thought that a refund counted as a payment but it doesn’t and I got a late payment fee (I did contact the bank and discussed the situation and I was let off the late payment fee.)

If you end up in credit, then just use it for your next shop.

I don't want to pay the minium as then I will have 35% interest charge.

My plan was to buy something each month and then pay it off fully to avoid the interest and build up my rating.

I'm going to contact the curtain shop and the CC company to see what dates I'm likely to be refunded/charged.

Never pay the minimum amount as that's how you end up in debt!!!

Usually you get around 6 weeks free credit with a credit card. Your refund should be processed by then and your credit card will automatically be credited with the amount of the refund.
Don't pay the balance on your credit card until the due date for payment. . if you want to make sure you never pay interest.Set up a direct debit so your balance is automatically paid from your bank account on the due date.

Is this the first time you've used the credit card?
You normally have a set date that a statement will be produced and once that comes out it will detail the date they need to receive your payment by. E.g. your statement date could be 1st of the month and you need to make a payment by the 15th of the month.

If you pay the bill and also get a credit from the refund then the credit card company should be able to refund the credit back to your bank account

Curtain shop must refund you within 14 days of you returning the item, that starts from the day you can prove you have posted them or dropped them off with Evri.

My statement is produced at the start of the month and then my direct debit for the full amount comes out at the end of the month.
This month my payment will come out on 28th March as shown

It will be back on your card as a credit. Use that money the following month. I highly recommend a direct debit for the balance to avoid messing up

What I meant, was to pay the minimum amount before the refund got returned to the account, to prevent a late payment fee. I didn’t mean pay the minimal amount ongoing, for the reason you give. Ie. The account never gets paid off, and accrues interest on top of the initial amount.

Set up a DD to pay the balance off in full every month. If the curtains are refunded before the statement is produced, your balance will be zero.

If they're refunded after the statement is produced, some cards automatically count this as a payment and won't take a DD, others will take it anyway.

If it's the latter, just use the card to pay for things you'd normally buy like groceries or petrol, so you get the money back in your current account that way, because you've bought these things without money being taken out of your account.