When money going into an account is NOT a payment?


#1

I just wonder how do your credit cards work.
I have a credit card that I buy all my on line purchases with, and in the end of the months pay out the whole amount, so never get interest charged. My last few months were bad for my shopping; the July account had close to $300 of refunds for items I sent back, which I assumed would count as payments. So, instead of paying the $1400 due I paid $1100. Today I got statement and they charged me $60 interest, because I did not pay the total. I just wonder if all CCs do that. I am sure my other CC does not.


#2

Mine would count the balance owing as $1100 since $300 was refunded you no longer owe that amount and should not be expected to pay it. I wonder if the refund was processed after the statement date and that’s why you were charged for it?


#3

No, right in the middle, I looked very carefully calculating what should I pay.


#4

That’s odd. Maybe call the company, ask them what happened?


#5

I did call them, and they said that refunds are not payments. I said I will look into it and most likely close that account.

Just to clarify; the items were purchased during the July billing period, but the refunds did not come out until the next billing period. The July account was due end of August, and I knew that there was lots paid in refunds so I went through my PP account and added up all the refunds that came in during August, then I paid the remaining amount. All together the refunds and my payment equaled the amount spent.

Lets say I would not have enough to pay anything in one month, so to pay the minimum payment I would take $50 cash out and few days later make the payment. Would they say it was not payment, it was just returning the money I took out? LOL It’s just ludicrous.


#6

That’s crazy! So you’d have to take the refund money out and then put it back in? That makes no sense. Guess that’s one way for them to earn more money, though.


#7

Sounds like you have a high interest rate. If you are a long term solid customer, I would try to negotiate that down. Tell them to give you an incentive to carry a balance. :grin:


#8

In this case you always ask for a supervisor and explain . If happened once they usually cancel the interest fee . But my CC works that way , refunds are money coming in . It come back as a payment . I never ever pay interest on my CC .


#9

I can see how an automated system might make that mistake, but calling customer service should resolve it. There have been a few times I’ve called after making a late payment because of life situations (not sob stories- but things like having a baby and accidentally missing the date haha). Reps have always taken one look at the solid payment history and refunded any fees right away.

If customer service isn’t willing to do that after you explain the situation, I’d agree with your decision to take your business elsewhere.


#10

I would definitely call and ask for someone who has the authority to overturn that. Most CC’s will take care of their good customers and it sounds like you are one of them. A simple threat to go elsewhere usually fixes that sort of thing.


#11

I have Chase Visa for many years, and ppay at the end of the month, like you do. The same thing happened to me, a few years ago, and called Chase and threatened to cancel the card and they removed the charges.(. now I just pay the whole amount monthly and get the credit later) Def call, they will remove it, I bet


#12

I do not care about the interest rate; I always pay out in full, so it costs me nothing. I have had this card for close to 40 years; originally it was a store card, but it changed hands many times. I like to have it for eBay and other online purchases because it has only small credit, if anybody hacks my account they will not get much.


#13

One more reason I have no credit cards-I only use PayPal, pre-paid cards or cash. They’d be foolish to allow you to close your account over $60.