A returned payment fee is a fee charged by a credit card issuer if you pay your bill with a check or electronic payment from an insufficiently-funded or closed account. The returned payment fee applies even if you incorrectly enter your payment information by accident, as the payment will not process correctly.
Your credit card issuer could charge $25-$35 for each returned payment fee. For example, Capital One’s general credit card terms say their returned payment fee is $35, but this fee could vary from card to card. The fee may also vary based on how many times you’ve had payments returned, or based on your minimum payment amount. You’ll be able to find your credit card’s returned payment fee in your card’s terms and conditions document.
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.… read full answer
With store refunds, the time frame depends on the individual merchant’s policy. For instance, refunds for items returned by mail may take longer rather than in-store. That’s especially true if you’re returning something to a merchant in another country. You should also keep in mind that not all stores even offer refunds, while others limit them to defective merchandise.
So the two biggest factors that determine refund turnaround times are the type of refund you’re seeking and store policy. But to make an accurate estimate, it helps to know all the issues in play.
Here’s what decides how long a credit card refund takes:
If you’re disputing a charge, it could take up to 150 days to receive a refund, assuming the credit card company rules in your favor.
Simpler disputes can be resolved faster. For example, if you can produce receipts, it’s easy to establish that you’re telling the truth. That’s one reason to always save them.
You could dispute a charge if a purchase never arrives or comes damaged, for example, or if you’re charged for a larger tip than you left.
If you’re returning a purchase, you could get an immediate refund in-store, while a mailed return takes several weeks. The timetable depends on the merchant’s policies, either way.
The best way to find out exactly how long a credit card refund will take is to contact the merchant or your credit card issuer, depending on whether it’s a return or a dispute. And it’s worth noting that some stores only allow returns for store credit. Luckily, many cards offer return protection. So even if you can’t get a return in store, you might be eligible for reimbursement from the credit card company if your item is new and undamaged. And if you do get a credit card refund, it will show up as a credit on your statement.
To cancel a credit card transaction, contact either the merchant on the other side of the transaction or the credit card company. Which you should contact first depends on whether or not you think the transaction is fraudulent.
When You Think the Transaction Is Fraudulent:
If you want to cancel a credit card transaction because you think it is fraudulent, the first thing you should do is search online for the name of the biller, as listed on your credit card account. Sometimes, legitimate transactions can lead to false alarms simply because a biller’s corporate name isn’t as recognizable as the brand name a consumer really does intend to pay. If that clears things up in your case, great – crisis averted.… read full answer
However, if you still don’t recognize the details, you should definitely call your credit card’s issuer (the number is listed on the back of your card) to inform them about the unauthorized transaction. Even if the issuer can’t cancel the transaction before it goes through initially, you will not be on the hook for any fraudulent purchases made with your credit card account. All credit cards give users a $0 fraud liability guarantee.
When You Just Want to Cancel the Transaction:
If you know that a credit card transaction is legitimate, but you want to cancel it because you changed your mind or made the purchase by mistake (or any other reason), take your request directly to the merchant the transaction is with. The credit card company won’t be able to do much about a legitimately authorized credit card transaction. They might be able to instruct you on how to cancel future transactions if the card is being used for a subscription or other recurring purchase, but that’s about it.
Your chances of being able to cancel a credit card transaction made online figure to be especially good. Check the merchant's cancellation policy. Some provide a small window in which you can cancel a pending transaction. Just bear in mind that in this situation, an order may show as canceled before the transaction reversal posts to your credit card account.
You can’t overdraft a credit card. The term “overdraft” actually applies more to bank accounts. Credit card issuers tend to use “over limit,” since you’re spending more than your credit limit. Whatever you call it, most credit cards don’t allow the practice. So if you try to exceed your credit limit, your transaction will just be declined. And even if your card doesn’t forbid it, you still have to opt-in to be able to spend more than your limit. This rule was put into place after the Great Recession to help curb the excessive fees that many cardholders were previously charged.… read full answer
Keep in mind, though, that if you “overdraft” a credit card, it will come with some pretty undesirable consequences. You can look forward to afee equal to the amount by which you went over limit. You’ll also face an increased minimum payment and likely higher interest rates on future purchases. Plus, your credit utilization will take a huge hit.
Here’s what you should know about credit card overdrafts:
You’ll need to ask your issuer if they allow over-limit purchases. If they do, you can ask them to opt you in, which will allow you to exceed your credit limit. If you don’t opt-in, you can’t be charged an over-limit fee.
Even if your issuer lets you “overdraft,” it’s still up to them whether to approve any transactions you make over your limit.
“Overdrafting” your credit card usually will result in an over-limit fee, which legally cannot be larger than the amount by which you went over the limit.
You can expect your minimum payment for the next month to increase by the amount you went over your limit. So if your minimum payment would normally be $25 and you went $50 over your limit, you’ll need to pay a minimum of $75 (or your full balance if it’s less than that).
Your issuer may impose a penalty APR if you spend more than your limit. They are required by law to inform you of any APR increase 45 days in advance. After that, your rate could never go back; issuers are required to get rid of penalty APRs on late balances when a customer pays on time for 6 months, but there’s no such rule for new purchase APRs. They still have to evaluate your account every 6 months but have the power to decide whether to bring your rate back down.
Exceeding your credit limit means your credit utilization will be over 100%. That’s bad news for your credit score.
It’s not a good idea to “overdraft” your card. If you really need to spend more than your credit limit, there are a few things you can do. First, call your issuer and ask if you’re eligible for a higher credit limit. If you’re not, you could apply for another credit card. If both of those methods fail, you might need to use a debit card instead (if you have the funds available). The fees and credit score damage involved with going over your credit card’s limit definitely aren’t worth it.
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