Credit card refund pay billing first and then get credit or not billed just credited

Question

I used my credit card to make a purchase. I returned the item the next day because it was not what I expected. Will I need to pay for this charge on my billing and then have to wait for a refund or credit or will it automatically be credited back to my credit card so I won't need to pay the charge.

Answer 1

There are some rare exceptions but, most likely, you will not have to pay for the charge first. Below are some scenarios.

If the credit posts to your account before the end of the period that includes the charge:

• The credit may be applied to your last statement bill if the payment due date has not been reached. In this case, you will get the credit before the charge.

or

• The credit may be applied to the current billing period that includes the charge, thereby canceling it simultaneously.

If the credit posts to your account after the end of the period that includes the charge:

• The credit will be applied to the statement period that included the charge, thereby canceling it simultaneously.

or

• The credit will be applied to the statement period after the charge. This is unlikely and the only instance in which you would pay, then get effectively reimbursed.

Answer 2

As long as the credit posts before the payment due date, you should be fine.

A credit Is not acceptable as a minimum payment, but it does reduce the total balance owed. If it reduces your total balance to less than your minimum payment amount, then the minimum payment is now only the total balance. That can be zero, in which case no payment is needed.