How to handle credit card payment refunds?

Under normal circumstances, after a user makes a purchase using a credit card, the refund generated before the credit card bill is issued and the payment is made will be directly refunded to the user's credit card account, which will offset the credit card limit of the previous consumption. As the refund funds arrive, the credit limit of the credit card will also be restored. If the credit card has been repaid, the refund will still be returned to the user's credit card account. If there is no outstanding balance on the card, the refund will exist as an overpayment on the credit card and will be used first when making purchases with the card later. Overpayment or repayment can be made directly using the overpayment.

Nowadays, many people almost choose to apply for a credit card. After applying for a credit card, they can make advanced purchases within the credit limit. As long as they can complete the repayment of the credit card within the specified time, they can also enjoy Certain interest-free period.

The above is an introduction to the refund of credit card payment, I hope it can be helpful. In short, as long as a refund occurs on a credit card, no matter what the situation is, the refund funds will directly enter the credit card account, but the form of existence is different.

I bought something with my credit card and got a refund. What should I do with the money?

Refunds will be refunded according to the original route. If you paid with a credit card, it will be refunded to the credit card. If there is no balance outstanding on the card, the refund will be retained on the card as an overpayment and will be used first when swiping the card in the future. If there is an overpayment, if there is any balance on the card, the balance will be automatically deducted.

What are the credit card repayment methods?

Credit card repayment means that when the cardholder’s credit card consumption reaches the final repayment date, in order to ensure the cardholder’s good credit record, The bill consumption funds will be returned to the bank.

1. Full repayment. When the bill comes out, pay it off in one lump sum. This is the best repayment method, but the funds required are also quite large. If the bill amount is 100,000, then 100,000 funds are needed to pay it back.

2. Installment repayment. After the bill comes out, you can repay the current bill in installments. Generally, it can be divided into 3/6/9/12/18/24 installments. This method is relatively less stressful, but it does require a certain amount of responsibility. installment handling fee.

3. Minimum repayment amount. Every bank will give you a minimum repayment amount (10% of the current bill) when issuing a bill. This method is also the least cost-effective repayment method. If the bill amount is large, high interest charges will be paid. The minimum repayment means spending more money to ensure your credit score, but it will only cost you a little more interest.

Can I get a cash refund after swiping my credit card in a shopping mall?

Cash refunds are not allowed. The refund will be returned to the credit card via the original route to offset the frozen limit.

Because the direct cashback involves cashing out by credit card, the merchant is suspected of cashing out for others. If the circumstances are serious, it constitutes the crime of illegal business operations.

According to the provisions of Article 225 of the Criminal Law, those who operate illegally and the circumstances are serious shall be sentenced to not more than five years or criminal detention, and shall also or solely be fined not less than one time but not more than five times the illegal income; if the circumstances are particularly serious, If found guilty, he shall be sentenced to not less than five years and shall also be fined not less than one time but not more than five times his illegal income or his property shall be confiscated.

"Interpretation of the Supreme People's and Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Laws in Handling Criminal Cases Obstructing the Management of Credit Cards" Article 7 violates national regulations by using point-of-sale terminals (POS machines) and other methods to fictitiously Direct cash payments to credit card holders through transactions, false prices, cash returns, etc., and if the circumstances are serious, they shall be convicted and punished for the crime of illegal business operations in accordance with the provisions of Article 225 of the Criminal Law.

If a cardholder uses the above method to maliciously overdraft for the purpose of illegal possession and should be held criminally responsible, he will be convicted and punished for credit card crimes in accordance with the provisions of Article 196 of the Criminal Law.

How to refund by credit card?

Generally, the processing methods are different depending on the time when the refund is received.

1. If the credit card bill is refunded a few days ago and you have not repaid the credit card, the refund amount will be directly deducted from the credit card balance. If you want to withdraw cash, because you are withdrawing funds within the credit card limit, a handling fee of 1% of the withdrawal amount will be charged, and interest will be calculated on a daily basis.

2. If the credit card bill is refunded in the future, the cardholder must use his own money to repay because the current balance cannot be deducted, so the refund money can easily become an overpayment. .

Cardholders can withdraw cash directly. Although no interest will accrue, handling fees may also be charged. The fees charged according to the bank's overpayment cash withdrawal standards are not cost-effective.

Extended reading

A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the name of the issuing bank, validity period, number, cardholder name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially appointed commercial service departments, and then the bank will make settlements with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretation of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is CreditCard.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date (BillingDate).

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the specified credit limit. The so-called credit card generally refers to a credit card only.

Starting from January 1, 2021, the credit card overdraft interest rate will be determined independently by the card issuer and the cardholder through independent negotiation, and the upper and lower limit management of credit card overdraft interest rates will be cancelled. The daily interest rate is 0.7 times 5/10,000). [5]

On May 25, 2021, the Supreme People’s Court issued and implemented the “Regulations of the Supreme People’s Court on Several Issues Concerning the Trial of Bank Card Civil Cases”.

Will the refund be refunded to the credit card after the credit card is charged?

Yes, the credit card refund will be refunded to the original credit card. Regarding credit card refunds, refunds are only for The revocation of the original transaction does not count as actual repayment. The account after the refund is not actually credited to the credit card, but is used as an overpayment on the credit card. 1. Future refunds on bills are not counted as current repayments. "Refunds" in credit cards are different from cash repayments. Air ticket refunds, Alipay account refunds or consumption cancellations from other merchants cannot be included in current repayments; only users The repayment is considered as depositing cash yourself. 2. “If the refund is received before the bill date, the consumption can be deducted; but if it is received after the bill date, it cannot be deducted from the current month’s repayment and can only be included in the next month’s bill. "3. The credit card refund process is relatively complicated. The merchant initiates the refund and the bank is only the recipient. Therefore, there will be no SMS reminder when the credit card refund arrives. It is recommended that cardholders make detailed inquiries to the bank when encountering actual refund issues. .

4. Pay attention to the refund arrival time. After a cardholder made a refund, the merchant said that the refund was successful, but when he checked the credit card, he found that it had not been credited to the account, and the credit limit had not been restored. In fact, this situation is normal. It usually takes 3 to 5 days for a refund to be credited to the credit card. , there will be a text message notification arriving at your account, just pay more attention to the notification.

5. Pay attention to the refund and cash withdrawal methods. There are many ways to withdraw the money refunded to the credit card. You can use your credit card to withdraw cash directly through the counter or ATM machine at a bank branch. You need to enter the correct cash withdrawal password, and sometimes you have to queue up, which is more time-consuming; some banks You can use credit card transfer directly on mobile banking or online banking, and you can operate it by providing the bank card in your name, which is convenient and fast.

6. Calculate the cost of refund and cash withdrawal. Many cardholders will check the credit card limit when withdrawing cash. After withdrawing the money from the card, they find that something is wrong. The credit card limit has become less. However, they only withdraw the overpayment. In this case, the details are deducted. fee. Many banks treat money in credit cards equally. No matter whose money is in the card, you may have to pay a handling fee if you want to withdraw it. If the handling fee is deducted from the credit card limit, the money must be paid back.

That’s it for the introduction of refund after credit card swiping.