What is a credit balance refund? This question is about Credit Cards

A credit balance refund is a reimbursement you get after winding up with a negative balance on your credit card, which might occur if you pay more than the total balance or if you get a refund for a returned purchase. Credit card companies are required by law to issue a refund within 7 business days at the cardholder’s request. Key Things to Know About Credit Balance Refunds Depending on your credit card’s issuer, credit balance refunds can be sent as a check or a refund to the bank account from which the payment was originally taken. You can usually contact your credit card issuer online, over the phone or by mail to ask for a credit balance refund. If you submit a written request, credit card companies are required to issue a credit balance refund within 7 business days of receiving it. If you are owed more than $1 but do not ask for a credit balance refund for 6 months, credit card companies are obligated to attempt returning the balance you are owed. Finally, you don’t need to ask for a credit balance refund at all. If you use the card regularly, it may be worth it to keep the negative balance. You can simply make more purchases with the card to bring the balance back to zero.

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What is a credit balance refund?

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This question is about Credit Cards

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Ryan P Page, Staff Writer

@ryan_page • 06/06/22 This answer was first published on 06/06/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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A credit balance refund is a reimbursement you get after winding up with a negative balance on your credit card, which might occur if you pay more than the total balance or if you get a refund for a returned purchase. Credit card companies are required by law to issue a refund within 7 business days at the cardholder’s request.

Key Things to Know About Credit Balance Refunds

Depending on your credit card’s issuer, credit balance refunds can be sent as a check or a refund to the bank account from which the payment was originally taken.
You can usually contact your credit card issuer online, over the phone or by mail to ask for a credit balance refund.
If you submit a written request, credit card companies are required to issue a credit balance refund within 7 business days of receiving it.
If you are owed more than $1 but do not ask for a credit balance refund for 6 months, credit card companies are obligated to attempt returning the balance you are owed.

Finally, you don’t need to ask for a credit balance refund at all. If you use the card regularly, it may be worth it to keep the negative balance. You can simply make more purchases with the card to bring the balance back to zero.

How long does a credit card refund take?

A credit card refund could take anywhere from a few minutes to several weeks, if you’re returning a purchase. But if you’re seeking a refund because you’re disputing a charge on your monthly statement, the process could take up to 150 days. The law dictates that you must notify your credit card’s issuer of the problem within 60 days. And they must resolve it within 90 days of being notified.

Here’s what decides how long a credit...

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What does a negative balance on a credit card mean?

A negative balance on a credit card means that your balance is belo zero. In other words, your credit card company owes you money, rather than the other way around. In other words, you’ve paid more than your total balance due. Credit card companies generally prevent you from paying more than you owe, especially online. But if you pay by check, you might get around the policy. You’ll see the negative balance on your monthly statement...

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What's the difference between available credit and credit limit?

The difference between a credit card’s available credit and its credit limit is the relationship between the cardholder’s current spending power and his or her total spending power. A credit limit is the maximum amount that can be charged to a credit card overall. Available credit is the credit limit minus any unpaid balance, including pending charges that have yet to post to the account.

Your available credit will increase by the amount of...

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